The Cyclically Adjusted Deficit as a Percentage of GDP Is

question 305

Multiple Choice

The cyclically adjusted deficit as a percentage of GDP is 2 percent in Year 1. This cyclically adjusted deficit becomes 1 percent of GDP in Year 2. It can be concluded that from Year 1 to Year 2,

• A) fiscal policy was more expansionary.
• B) fiscal policy was more contractionary.
• C) the Federal government is decreasing taxes.
• D) the Federal government is increasing spending.

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Definitions:

Cocaine

A powerful stimulant drug derived from the leaves of the coca plant, often used recreationally and known for its addictive properties.

Psychedelic Drug

Substances that alter perception, mood, and a variety of cognitive processes, often used in research or therapy.

Cognitive Functioning

The mental processes involved in gaining knowledge and comprehension, including thinking, knowing, remembering, judging, and problem-solving.

Marijuana

A psychoactive drug from the Cannabis plant used for medical or recreational purposes, known for its effects on mood and perception.