The Cyclical Deficit Is the Portion of the Deficit

question 46

Multiple Choice

The cyclical deficit is the portion of the deficit

• A) the result of discretionary federal spending.
• B) that is the result of nondiscretionary federal spending.
• C) created by fluctuations in real GDP.
• D) that would exist if the economy were at potential real GDP.

---

Definitions:

Sella Turcica

A saddle-shaped depression in the sphenoid bone at the base of the human skull that houses the pituitary gland.

Undersurface

The side or part positioned below or underneath the main body of an object or structure.

Pituitary

A small, pea-sized gland located at the base of the brain that produces hormones regulating growth, metabolism, and reproductive functions.

Triiodothyronine (T3)

A thyroid hormone that plays a vital role in regulating metabolism, body temperature, and heart rate.