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.

foreign debt

potential GDP

national debt

real GDP

Answer 1

To evaluate the status of fiscal policy, one would compare the sizes of adjustments in budget deficits and surpluses according to the level of **real GDP**.

Real GDP reflects the actual economic output and serves as a key indicator to gauge the effectiveness of fiscal policy adjustments.