The Cyclically Adjusted Budget Deficit

question 28

Multiple Choice

The cyclically adjusted budget deficit:

• A)adjusts the deficit for inflation.
• B)estimates what the deficit would be if the economy were operating at the natural level of output.
• C)accounts for assets as well as liabilities.
• D)measures the impact of fiscal policy on the lifetime incomes of individuals of different ages.

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Definitions:

Korsakoff's Syndrome

A chronic memory disorder often caused by severe deficiency of thiamine (vitamin B1), frequently associated with alcoholism.

Anorexia Nervosa

A psychological condition marked by significantly low body weight, a profound dread of weight gain, and a skewed view of one's body size or form.

Electroconvulsive Therapy

A medical treatment involving the induction of seizures through electrical currents to the brain, primarily used for severe depression.

Implicit Memory

A type of memory that enables us to perform tasks without conscious awareness of the previous experiences that contribute to the knowledge.