The Cyclically Adjusted Budget Deficit

question 48

Multiple Choice

The cyclically adjusted budget deficit:

• A)is no different from the actual budget deficit.
• B)fluctuates less than the actual budget deficit.
• C)fluctuates more than the actual budget deficit.
• D)remains unchanged throughout the business cycles.

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Definitions:

Narrative Transportation Theory

A theory suggesting that when people lose themselves in a story, their attitudes and intentions can be changed to reflect that story.

Elaboration Likelihood Model

A theory explaining how people are persuaded, distinguishing between two main routes to persuasion: central and peripheral.

Psychological Reactance Theory

A theory suggesting that individuals are motivated to restore their freedom when they experience restrictions or threats to their perceived choices.

Attitude Inoculation

A psychological technique that strengthens a person's resistance to persuasion by exposing them to weak arguments against their viewpoints.