An estimate of what the budget deficit would be if the economy was not in a recession and if automatic stabilizers were not in effect is known as the _____ budget deficit.
A) cyclically adjusted
B) stabilizer adjusted
C) recession-free
D) stabilized

Question

Quizplus · Accepted Answer

The cyclically adjusted budget deficit is an estimate of the budget deficit adjusted for the effects of the economic cycle, removing the influence of temporary fluctuations due to the economic cycle, such as those caused by recessions or booms, and the effects of automatic stabilizers.

An Estimate of What the Budget Deficit Would Be If