A nation can forecast the following year's deficit without knowing how fast GDP will grow.
Because of automatic stabilizers,the revenue and expenses of the government are sensitive to the budget cycle and the economic growth rate.

Question

Quizplus · Accepted Answer

A nation cannot accurately forecast the following year's deficit without knowing the GDP growth rate, as economic growth affects government revenue and expenses through automatic stabilizers.

A Nation Can Forecast the Following Year's Deficit Without Knowing