In Year 1, the Actual Budget Deficit Was $200 Billion

question 392

Multiple Choice

In Year 1, the actual budget deficit was $200 billion and the cyclically adjusted deficit was $150 billion. In Year 2, the actual budget deficit was $225 billion and the cyclically adjusted deficit was $175 billion. It
Can be concluded that fiscal policy from Year 1 to Year 2 became more

• A) proportional.
• B) progressive.
• C) contractionary.
• D) expansionary.

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