What provides the information needed to assess discretionary policy and determine whether it is expansionary, contractionary, or neutral?

Multiple choice question.

Actual deficits

The crowding-out effect

Built-in stabilizers

Cyclically adjusted budgets

1 answer

The correct answer is Cyclically adjusted budgets.

Cyclically adjusted budgets provide a way to assess the stance of fiscal policy by adjusting the budget for the effects of economic fluctuations, allowing analysts to determine if the policy is expansionary, contractionary, or neutral regardless of the current state of the economy.