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QUESTION

If the economy is producing less than its potential GDP and the budget balance is in deficit, then the _____________________ will show a larger...

If the economy is producing less than its potential GDP and the budget balance is in deficit, then the _____________________ will show a larger deficit than the ___________________.

  1.   discretionary fiscal policy; trade balance 
  2.   expansionary fiscal policy; standardized employment budget 
  3.   the automatic stabilizers, government budget balance 
  4.   actual budget deficit; standardized employment budget 
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