If the economy's full-employment output is $6 trillion, actual output is $3.5 trillion, and the budget deficit is $20 billion, the deficit in this case is known as a

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A cyclical deficit is a budget deficit that occurs as a result of a downturn in the economy. In this case, the actual output is significantly below the full-employment output, indicating a recessionary gap and high unemployment. The budget deficit of $20 billion is likely a result of decreased tax revenue and increased government spending on programs such as unemployment benefits. Thus, it is a cyclical deficit caused by the economic downturn. The other choices are not appropriate in this case - a natural employment deficit occurs when actual output is below full-employment output due to factors such as population growth or changes in technology, and there is no budget deficit. A structural deficit is a budget deficit that is not directly related to the business cycle but instead reflects a structural imbalance between government spending and revenue. A debt deficit is not a common economic term.

If the Economy's Full-Employment Output Is $6 Trillion, Actual Output