The cyclically adjusted deficit is the difference between annual government expenditures and tax revenues that would have occurred if the economy was:
A)in a recession.
B)at full employment.
C)at the peak of a business cycle.
D)at the trough of the business cycle.

Question

Quizplus · Accepted Answer

The cyclically adjusted deficit measures the deficit that would exist if the economy were operating at full employment, removing the effects of the business cycle on government revenues and expenditures.

The Cyclically Adjusted Deficit Is the Difference Between Annual Government