Economists Refer to a Budget Deficit That Exists When the Economy

question 58

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:

Control

The power to govern the financial and operating policies of an organization so as to obtain benefits from its activities.

Investee

A company or entity in which an investor holds an interest, typically through ownership of shares.

Acquisition Cost

The total cost associated with acquiring an asset or investment, including the purchase price and all related expenses.

Due Diligence Fees

Costs associated with the research and analysis conducted before entering into an agreement or transaction.