If the Cyclically Adjusted Budget Has a Zero Deficit but the Actual

question 372

True/False

If the cyclically adjusted budget has a zero deficit but the actual budget has a $100 billion deficit, then
that means that the government is pursuing an expansionary fiscal policy.

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Definitions:

Price/Earnings Ratio

A financial ratio that compares a company's share price to its earnings per share, indicating the value that investors are ready to pay for each dollar of earnings.

Market Price

The current price at which an asset or service can be bought or sold.

Working Capital

The dollar difference between total current assets and total current liabilities.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year.