In Year 1, the Actual Budget Deficit Was $150 Billion

question 391

Multiple Choice

In Year 1, the actual budget deficit was $150 billion and the cyclically adjusted deficit was $125 billion. In Year 2, the actual budget deficit was $130 billion and the cyclically adjusted deficit was $125 billion. It
Can be concluded that from Year 1 to Year 2,

• A) real GDP decreased.
• B) real GDP increased.
• C) full employment was attained.
• D) fiscal policy became less expansionary.

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Definitions:

Lorenz Curve

A graphical representation showing the distribution of income or wealth within a society, indicating the degree of inequality.

Income Quintile

An income quintile is a statistical measure dividing the population into five equal groups based on their income levels to analyze economic inequality or wealth distribution.

Non-Cash Assistance

Support provided to individuals or families that does not involve direct financial payments, such as food stamps, housing vouchers, or healthcare services.

Poverty Income Threshold

A specified income level, set by government standards, below which an individual or family is considered to be living in poverty.