AP Economics Chapter 12 Study Guide – TB
In Year 2, the actual budget deficit was $225 billion and the full-employment deficit was $175 billion. GDP was $1000 billion in Year 1 and $1005 billion in Year 2. It can be concluded that fiscal policy from Year 1 to Year 2 was: A) proportional. B) inflationary. C) contractionary. D) expansionary. 15. If the full-employment budget deficit ... ................
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