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:

Fewer Taxes

Implies a reduction in the amount of taxes imposed on individuals or businesses, which can affect economic behavior and investment decisions.

Market Economy

A market economy is an economic system in which supply and demand from consumers drive the production of goods and services.

Cash Crops

Cash crops are agricultural products grown primarily for sale to others rather than for personal use by the farmer or grower.

Urban Areas

Densely populated regions characterized by high human settlement and infrastructural development, often contrasted with rural areas.