Cyclically adjusted budgets are useful because they:
A) systematically account for changes in government assets and liabilities.
B) reflect policy changes, but not current economic conditions.
C) account for tax burdens on different generations of taxpayers.
D) correctly account for the impact of inflation on government indebtedness.

Question

Quizplus · Accepted Answer

Cyclically adjusted budgets are designed to show what the budget balance would be under normal economic conditions, thus reflecting policy changes without the influence of current economic fluctuations.

Cyclically Adjusted Budgets Are Useful Because They