The cyclically balanced budget deficit doesn't fluctuate as much as the actual budget deficit.

Question

Quizplus · Accepted Answer

The cyclically balanced budget deficit is designed to remain more stable by adjusting for economic cycles and changes in the business cycle. This means that it should fluctuate less than the actual budget deficit, which is affected by changing economic conditions and policy decisions that are made on an ongoing basis.

The Cyclically Balanced Budget Deficit Doesn't Fluctuate as Much as the Actual