Question

Suppose that in 1969, the U.S. economy was operating close to potential. The budget deficit experienced by the United States in 1969 was:

Answer 1

Answer: primarily cyclical deficit

Explanation:

Budget deficit occurs when the government expenditure for a certain year is more than the revenue the government makes.

Since the the United States economy was operating close to potential. The budget deficit experienced by the United States in 1969 was primarily cyclical deficit.