Without a Change in Discretionary fiScal Policy, We Would Expect

question 334

Multiple Choice

Without a change in discretionary fiscal policy, we would expect that if the economy goes into recession, then the

• A) cyclically adjusted deficit and the actual deficit would both increase.
• B) cyclically adjusted deficit and the actual deficit would both decrease.
• C) cyclically adjusted deficit would stay the same while the actual deficit would increase.
• D) cyclically adjusted deficit would increase while the actual deficit would stay the same.

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