The cyclically balanced budget is an estimate of what the budget balance would be if real GDP were exactly equal to potential output.

Name: The cyclically balanced budget is an estimate of what the budget balance would be if real GDP were exactly equal to potential output.
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The cyclically balanced budget is based on the premise of balancing the budget in the long run, assuming that real GDP is equal to potential output over the course of the business cycle.

The Cyclically Balanced Budget Is an Estimate of What the Budget