Economists Refer to a Budget Deficit That Exists When the Economy

question 2

Multiple Choice

Economists refer to a budget deficit that exists when the economy is achieving full employment as a

• A)cyclical deficit.
• B)cyclically adjusted deficit.
• C)natural deficit.
• D)nonrecurring deficit.

---

Definitions:

Materials Purchased

The raw materials acquired by a company for use in the production or manufacturing of its goods.

Materials Requisitioned

The process of requesting and withdrawing materials from inventory for production or use.

Production

The act of generating goods and services by blending human effort, resources, and technological advancements.

Cost of Production

The total expenses incurred in manufacturing a product or offering a service, including materials, labor, and overhead costs.