Question
Evaluating the status of fiscal policy requires comparing the sizes of adjustments in budget deficits and surpluses according to the level of Blank______.
Multiple choice question.
national debt
foreign debt
potential GDP
real GDP
Multiple choice question.
national debt
foreign debt
potential GDP
real GDP
Answers
GPT-4o mini
To evaluate the status of fiscal policy, you would compare the sizes of adjustments in budget deficits and surpluses according to the level of **real GDP**.
Real GDP is used because it provides a measure of the economy's actual output, allowing for a clearer understanding of the fiscal position relative to the economy's size and growth.
Real GDP is used because it provides a measure of the economy's actual output, allowing for a clearer understanding of the fiscal position relative to the economy's size and growth.