In early 2013, economists predicted that the U.S. economy would grow more rapidly than had been predicted. If this prediction comes true, then the cyclical deficit will ________ than had been predicted.

Question

Quizplus · Accepted Answer

The cyclical deficit is a component of the overall deficit that is affected by changes in the level of economic activity. If the economy grows more rapidly than predicted, tax revenues will increase faster than expected and expenditures on programs such as unemployment insurance will decrease, causing the cyclical deficit to shrink more rapidly.

In Early 2013, Economists Predicted That the U