Economists refer to a budget deficit that exists when the economy is achieving full employment as a
A)cyclical deficit.
B)cyclically adjusted deficit.
C)natural deficit.
D)nonrecurring deficit.

Question

Quizplus · Accepted Answer

A cyclically adjusted deficit refers to a budget deficit that would exist even when the economy is at full employment, as it accounts for the structural aspects of the budget rather than temporary economic fluctuations.

Economists Refer to a Budget Deficit That Exists When the Economy