Question

During the Great Recession, budget deficits grew dramatically as tax revenues decreased and government spending increased....

During the Great Recession, budget deficits grew dramatically as tax revenues decreased and government spending increased. Which of the following caused the higher budget deficits

A.Budget deficits increased due to crowding-out.

B.Budget deficits increased due to automatic stabilizers.

C.Budget deficits increased due to countercyclical fiscal policy.

D.Budget deficits increased due to recognition lags.

E.Budget deficits increased due to expansionary fiscal policy.

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