First,define and Explain the Cyclically Adjusted Deficit

question 18

Essay

First,define and explain the cyclically adjusted deficit.Second,explain what effect a recession caused,for example,by a reduction in consumer confidence will have on the size of the cyclically adjusted deficit.

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Definitions:

Corporate Stock

Equity instruments that signify an ownership position in a corporation, entitling the holder to a portion of the company's assets and profits.

Economists

Scholars or professionals who study, develop, and apply theories and concepts from economics, and write about economic policy.

Capacity Utilization Rate

A measure of how well a company or economy is using its productive capacity, expressed as a percentage of total potential output that is actually being realized.

Recessions

Periods of temporary economic decline during which trade and industrial activity are reduced.