The Cyclically Adjusted Budget Deficit or Surplus Measures What the Deficit

question 119

Multiple Choice

The cyclically adjusted budget deficit or surplus measures what the deficit or surplus would be if the economy was

• A)in a recession.
• B)in an expansion.
• C)at potential GDP.
• D)at potential tax revenue.

---

Definitions:

Public Sector

The portion of an economy that is controlled by national, state, or municipal governments, encompassing services like education, healthcare, and law enforcement.

User Charges

Payments users (consumers) are required to make if they want to receive certain services provided by the government.

Government Services

Various services provided by the government to its citizens, including education, healthcare, public safety, and infrastructure.

Tax Deductions

Expenses that can be subtracted from gross income to reduce taxable income and lower overall tax liability.