In early 2017, economists predicted that the U.S. economy would grow more rapidly than had been projected. If this forecast is correct, then the cyclical deficit will ________ than had been predicted.

Question

Quizplus · Accepted Answer

A cyclical deficit decreases when the economy grows faster than expected because higher economic growth leads to higher tax revenues and potentially lower government spending on unemployment benefits and other social services, thus reducing the deficit.

In Early 2017, Economists Predicted That the U