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

Question

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

Answer 1

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.