The cyclically adjusted budget reveals the status of U.S. fiscal policy by showing what the federal budget deficit or surplus would have been under Blank______.

Question

Multiple choice question.

existing tax rates and government spending levels if the economy had achieved its full-employment level of GDP

modified tax rates and lower interest rates if the economy had achieved its full-employment level of GDP

existing tax rates and government spending levels if the economy had achieved higher levels of unemployment

existing tax rates and interest rates if the economy had achieved its full-employment level of GDP

Answer 1

The cyclically adjusted budget reveals the status of U.S. fiscal policy by showing what the federal budget deficit or surplus would have been under existing tax rates and government spending levels if the economy had achieved its full-employment level of GDP.