If the government were able to operate a "cyclically balanced budget," then the actual budget would

Question

Quizplus · Accepted Answer

A cyclically balanced budget means the government aims to balance the budget over the economic cycle, running surpluses during inflationary periods (when the economy is doing well) to offset deficits during recessions (when the economy is underperforming). This approach does not require the budget to be balanced every year but over the cycle.

If the Government Were Able to Operate a "Cyclically Balanced