AP Macroeconomics Quiz
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LONG-RUN CONSEQUENCES OF STABILIZATION POLICIES
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Based on the government budget information shown, which statement best distinguishes a cyclical deficit from the national debt? Assume the national debt at the end of 2028 is $21,000 billion.
In 2029, a recession reduces tax revenue.
- 2029: Government spending $4,000; Tax revenue $3,600; Interest payments $500 (included in spending)
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