The Cyclical Deficit Is the Portion of the Deficit

question 48

Multiple Choice

The cyclical deficit is the portion of the deficit

• A)that is the result of nondiscretionary federal spending.
• B)created by fluctuations in real GDP.
• C)that does not add to the national debt.
• D)that is the result of discretionary federal spending.
• E)that would exist if the economy were at full employment.

---

Definitions:

Current Ratio

A liquidity ratio that measures a company's ability to cover its short-term obligations with its short-term assets.

Earnings Per Share

A company's profit divided by the outstanding shares of its common stock, indicating the company's profitability.

Year 2

Typically refers to the second year of a specific time frame or series, such as a company's second fiscal year.

Return On Investment

A metric utilized to assess an investment's efficiency or profit in comparison to its expenditure.