If the Cyclically-Adjusted Budget Shows a Deficit Zero and the Actual

question 140

Multiple Choice

If the cyclically-adjusted budget shows a deficit zero and the actual budget shows a deficit of about $150 billion, it can be concluded that there is:

• A) Built-in stability
• B) A cyclical deficit
• C) An expansionary fiscal policy
• D) A contractionary fiscal policy

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Definitions:

Fiscal Years

A one-year period that companies and governments use for financial reporting and budgeting, which may not necessarily align with the calendar year.

Cash Payments Journal

A financial journal that records all cash outflows or payments made by a company.

Office Supplies

These are consumable items used in an office environment for daily operations, including items like pens, paper, and staplers.

Pond Supplies Expense

The costs incurred for the maintenance or operational needs of a pond.