The Government's Cyclically Adjusted Budget Deficit (CAD)is the Budget Deficit

The government's cyclically adjusted budget deficit (CAD) is the budget deficit that would exist

A) if there were no discretionary fiscal interventions in the economy.
B) if real GDP were equal to potential GDP.
C) if policy were changed to eliminate the business cycle.
D) if tax rates were set to maximize tax revenues.
E) with taxes and expenditures measured at the equilibrium level of GDP.