Question
What was an indication of a successful result for the very large fiscal stimulus applied in 2020?
Multiple choice question.
A cyclically adjusted deficit for 2020 that was much smaller than the actual deficit
Employment levels falling below full employment
The cancellation in early 2021 of all ongoing federal stimulus programs
A small GDP gap by the first quarter of 2021
Multiple choice question.
A cyclically adjusted deficit for 2020 that was much smaller than the actual deficit
Employment levels falling below full employment
The cancellation in early 2021 of all ongoing federal stimulus programs
A small GDP gap by the first quarter of 2021
Answers
GPT-4o mini
The most appropriate 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.**
A small GDP gap indicates that the economy was performing closer to its potential output, suggesting that the stimulus effectively supported economic recovery.
**A small GDP gap by the first quarter of 2021.**
A small GDP gap indicates that the economy was performing closer to its potential output, suggesting that the stimulus effectively supported economic recovery.