The Cyclically Adjusted Budget Deficit or Surplus Measures What the Deficit

question 119

Multiple Choice

The cyclically adjusted budget deficit or surplus measures what the deficit or surplus would be if the economy was

• A)in a recession.
• B)in an expansion.
• C)at potential GDP.
• D)at potential tax revenue.

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Definitions:

Lowballing

A persuasive technique in which an initially favorable offer is made to gain agreement, but then terms are made less advantageous to the target.

Idiosyncrasy Credit

The leeway or toleration a group affords to a member with established credibility to deviate from group norms without severe sanction.

Expectation-States Theory

Expectation-States Theory is a sociological theory that explains how individuals form expectations of others in a group and how these expectations influence interactions and hierarchies.

Diffuse

To spread or cause to spread over a wide area or among a large number of people.