Evaluating the status of fiscal policy requires comparing the sizes of adjustments in budget deficits and surpluses according to the level of Blank______.

Question

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.