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(Table: Data for Two Island Cities) Looking at the data for the two cities, which statement describes what can be expected?
Budget Reform
The process of revising budgetary policies and practices to improve efficiency, reduce deficits, and allocate resources according to strategic priorities.
Budget Document
A detailed financial statement presenting a government's or organization's projected revenues and spending for a fiscal period.
Federal Budget Deficit
The financial situation where the federal government's expenditures surpass its revenues within a given fiscal year.
Automatic Stabilizers
Economic mechanisms, such as progressive taxation and welfare spending, that automatically adjust to mitigate economic fluctuations without the need for explicit government action.
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