An increase in the cyclical deficits will automatically increase the full-employment budget deficit.

Name: An increase in the cyclical deficits will automatically increase the full-employment budget deficit.
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Question

Quizplus · Accepted Answer

An increase in cyclical deficits does not automatically increase the full-employment budget deficit, as the latter is adjusted for the effects of the business cycle and reflects the deficit under conditions of full employment.

An Increase in the Cyclical Deficits Will Automatically Increase the Full-Employment