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That part of the deficit that results from a downturn in economic activity is called the __________ deficit.

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User Rboling
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That part of the deficit that results from a downturn in economic activity is called the Cyclical deficit.
The deficit when government expenditures are greater than the tax revenues, it is called budget deficit and when the government expenditures and the tax revenues are equal, this is known as balanced budget. And when you lose your job, the deficit you run is also a cyclical deficit.
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User Samvermette
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