The Cyclical Deficit Is the Portion of the Deficit

question 55

Multiple Choice

The cyclical deficit is the portion of the deficit

• A)that does not add to the national debt.
• B)that is the result of discretionary federal spending.
• C)that would exist if the economy were at full employment.
• D)that is the result of nondiscretionary federal spending.
• E)created by fluctuations in real GDP.

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Definitions:

War

A state of armed conflict between different countries or different groups within a country, involving organized aggression and often formal declaration.

Labor

encompasses the body of work, whether physical or intellectual, performed by individuals in exchange for compensation, and is a critical component of economic systems.

Strikes

A refusal to work organized by a body of employees as a form of protest, typically in an attempt to gain a concession from their employer.

Federal Legislation

Laws passed by the national government or Congress of a country, particularly referring to the United States, that apply to all states and citizens within the country.