In contrast to the structural deficit,the cyclical deficit reflects
A)Fluctuations in economic activity.
B)Fiscal policy decisions.
C)Changes in discretionary fiscal policy.
D)Changes in the "full-employment" deficit.

Question

Quizplus · Accepted Answer

The cyclical deficit reflects fluctuations in economic activity, specifically how the economy is performing in relation to full employment. It is separate from fiscal policy decisions or changes in discretionary fiscal policy, which would fall under the structural deficit.

In Contrast to the Structural Deficit,the Cyclical Deficit Reflects