The cyclically balanced budget is an estimate of what the budget balance would be during a recessionary gap with real GDP less than potential output.

Name: The cyclically balanced budget is an estimate of what the budget balance would be during a recessionary gap with real GDP less than potential output.
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A cyclically balanced budget refers to a budget that is balanced over the economic cycle, accounting for periods of both recession and expansion, not just during a recessionary gap.

The Cyclically Balanced Budget Is an Estimate of What the Budget