Complete the table below by stating whether the direction of discretionary fiscal policy was contractionary (C), expansionary (E), or neither (N), given the hypothetical budget data for an 1234 YearActual budget deficit (–) or surplus (+)Standardized budget deficit (–) or surplus (+)Direction of fiscal policy 13.92.1 2– 4.5– 2.6 3– 4.7– 3.0 4– 3.9– 2.6 5– 2.9– 2.0 6– 2.2– 1.9

INTRODUCTION The central bank mainly uses two types of monetary policies: expansionary and…

Answered: 1 2 3 4 Year Actual budget…

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter30: Government Budgets And Fiscal Policy

Section: Chapter Questions

Problem 16SCQ: What would happen if contractionary fiscal policy were implemented during an economic boom but, due...

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Complete the table below by stating whether the direction of discretionary fiscal policy was contractionary (C), expansionary (E), or neither (N), given the hypothetical budget data for an

1	2	3	4
Year	Actual budget deficit (–) or surplus (+)	Standardized budget deficit (–) or surplus (+)	Direction of fiscal policy
1	3.9	2.1
2	– 4.5	– 2.6
3	– 4.7	– 3.0
4	– 3.9	– 2.6
5	– 2.9	– 2.0
6	– 2.2	– 1.9

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