A Cyclically Adjusted Budget Balance

question 81

Multiple Choice

A cyclically adjusted budget balance:

• A)shows what the budget balance would be with a significant amount of cyclical unemployment.
• B)is an estimate of what the budget balance would be if real GDP were equal to potential output.
• C)is a good indicator of the structural deficit in the economy.
• D)is the same as the national debt, and it rises as interest cost is accrued.

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Definitions:

Reification

The conceptual process by which abstract concepts, ideas, or social constructs are made tangible or treated as real and concrete entities.

Economic Exchanges

Economic exchanges are transactions involving the transfer of goods, services, or resources between parties, usually in a market context.

Historical Materialism

A theoretical framework in the social sciences, originated by Karl Marx, that focuses on the material economic conditions shaping society and history.

Economic Relations

Pertains to the ways in which economic forces, such as production, distribution, and consumption of goods and services, influence social structures and individual interactions.