If the Cyclically Adjusted Budget Shows a Deficit of Zero

question 117

Multiple Choice

If the cyclically adjusted budget shows a deficit of zero and the actual budget shows a deficit of about $150 billion, it can be concluded that there is

• A) built-in stability.
• B) a cyclical deficit.
• C) an expansionary fiscal policy.
• D) a contractionary fiscal policy.

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Definitions:

Rack

A framework, typically with rails, bars, hooks, or pegs, for holding or storing items.

API GL-5

A classification of gear lubricants specified by the American Petroleum Institute (API) that indicates the lubricant is suitable for high-speed, high-shock load applications, such as in vehicle differentials.

Highway 5th Wheels

The coupling mechanism on a highway truck or trailer that allows for articulation and pivot of attached trailers.

Manufacturer

A company or entity that produces goods, often on a large scale, using raw materials, machinery, and labor.