The governments budget surplus in Macroland has risen consistently over the past five
Chapter 0, Problem 1(choose chapter or problem)
The governments budget surplus in Macroland has risen consistently over the past five years. Two government policy makers disagree as to why this has happened. One argues that a rising budget surplus indicates a growing economy; the other argues that it shows that the government is using contractionary fiscal policy. Can you determine which policy maker is correct? If not, why not?
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