Question

A cyclically-adjusted budget balance: a. shows what the budget balance would be when there is a significant amount of cyclical unemployment. b. is an estimate of what the budget balance would be if real GDP were equal to potential output. c. is a good indicator of the structural deficit that exists in the economy. d. is the same as the national debt and it rises as interest cost is accrued. e. estimates the actual budget balance if the unemployment rate was equal to zero.

Answer 1

B

Step-by-step explanation:

The cyclically adjusted budget balance is what the budget balance of an economy would be if the GDP was at its potential. It is also known as the known as the full employment budget balance