The cyclically adjusted budget refers to
A)the inflationary impact that the automatic stabilizers have in a full-employment economy.
B)that portion of a full-employment GDP that is not consumed in the year it is produced.
C)the size of the federal government's budgetary surplus or deficit when the economy is operating at full employment.
D)the number of workers who are underemployed when the level of unemployment is 4 to 5 percent.

Question

Quizplus · Accepted Answer

The cyclically adjusted budget measures the federal government's budgetary position (surplus or deficit) as if the economy were operating at full employment, removing the effects of the economic cycle.

The Cyclically Adjusted Budget Refers to