The bursting of the dot-com bubble in 2000, along with the terrorist attacks in 2001, made the U.S.government
A)decrease its cyclically adjusted budget deficit from 2000 to 2002.
B)increase its cyclically adjusted budget surplus from 2000 to 2002.
C)increase its cyclically adjusted budget deficit from 2000 to 2002.
D)increase its actual budget surplus from 2000 to 2002.

Question

Quizplus · Accepted Answer

The bursting of the dot-com bubble and the 2001 terrorist attacks led to economic downturns, prompting the U.S. government to increase spending and cut taxes, which increased the cyclically adjusted budget deficit.

The Bursting of the Dot-Com Bubble in 2000, Along with the Terrorist