A Cyclical Deficit Occurs When

question 65

Multiple Choice

A cyclical deficit occurs when

• A)government outlays are greater than revenues.
• B)government outlays are less than revenues.
• C)there is a deficit due to the fact real GDP is greater than potential GDP.
• D)there is a deficit due to the fact real GDP is less than potential GDP.
• E)there is a deficit even when real GDP equals potential GDP.

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Definitions:

Cultural Assumption

A belief or value that is widely accepted within a culture or society, often unconsciously, and influences behavior and attitudes.

Culture

The learned and shared way of thinking and acting among a group of people or society.

Interpersonal Communication

The exchange of information, feelings, and meanings between two or more people through verbal and/or non-verbal methods.

Feedback

Information received about the effect of an action or decision, which can be used to adjust future actions or decisions.