What was an indication of a successful result for the very large fiscal stimulus applied in 2020?

Question

Multiple choice question.

Employment levels falling below full employment

A cyclically adjusted deficit for 2020 that was much smaller than the actual deficit

The cancellation in early 2021 of all ongoing federal stimulus programs

A small GDP gap by the first quarter of 2021

Answer 1

The correct indication of a successful result for the very large fiscal stimulus applied in 2020 would be:

A small GDP gap by the first quarter of 2021.

This option suggests that the economy recovered well and was close to its potential output, indicating that the fiscal stimulus was effective in supporting economic growth.