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Refer to the data for a fictional economy. The changes in the budget conditions between 1999 and 2000 best reflect _____.

User Dresende
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Final answer:

The changes in the budget conditions between 1999 and 2000 reflect the expansionary fiscal policy adopted by the government to jump-start the economy by increasing government spending and reducing taxes.

Step-by-step explanation:

The changes in the budget conditions between 1999 and 2000 best reflect the expansionary fiscal policy adopted by the government to jump-start the economy.

During this period, many high-income countries, including the United States, experienced a financial crisis and deep recession.

In response, these governments ran very large budget deficits as part of expansionary fiscal policy, which involved lower government spending and higher taxes.

By increasing government spending and reducing taxes, the government aimed to stimulate economic growth and reduce the unemployment rates.

User Belden Fox
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