The Cyclically Adjusted Budget Tells Us

question 197

Multiple Choice

The cyclically adjusted budget tells us

• A)that in a full-employment economy, the federal budget should be in balance.
• B)that tax revenues should vary inversely with GDP.
• C)what the size of the federal budget deficit or surplus would be if the economy was at full employment.
• D)the actual budget deficit or surplus realized in any given year.

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Definitions:

Conditioned Stimulus

A previously neutral stimulus that, after being paired with an unconditioned stimulus, evokes a conditioned response.

Unconditioned Response

A natural, automatic response to an unconditioned stimulus that occurs without any prior learning.

Flavor Aversion Conditioning

A learning process in which an individual associates a particular taste with sickness or nausea, leading to an aversion to that taste in the future.

Temporal Conditioning

A form of conditioning in which the passage of time serves as the conditioned stimulus.