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
B. Real GDP increased
Economics
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What will be an ideal response?
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