The Cyclically Adjusted Budget Balance Is an Estimate Of

question 343

Multiple Choice

The cyclically adjusted budget balance is an estimate of:

• A)the contractionary fiscal policy needed to close an inflationary gap.
• B)the tax increase needed to compensate for larger government transfers so that the budget remains balanced.
• C)the expansionary fiscal policy needed to close a recessionary gap.
• D)what the budget balance would be if real GDP were exactly equal to potential output.

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Definitions:

Defensive Measure

Strategies or actions taken by a company to protect itself against hostile takeover attempts or competitive threats.

Target Company

A company that is the subject of a takeover by another firm, typically because it is considered to be attractive for investment or acquisition.

Potential Acquirer

An entity or individual considering the purchase or takeover of another company.

Spinoff

A type of corporate restructuring in which a company divides itself into two or more independently operated businesses, one being separated from the parent organization.