Question

What is the cyclically adjusted budget deficit? How can it be calculated?

What is the cyclically adjusted budget deficit? How can it be calculated?

Homework Answers

Answer #1

MEANING OF CYCLICALLY ADJUSTED BUDGET DEFICIT

It is caused because of slowing economy and rather than the policies like fiscal such as inclination of the spending which is discretionary in nature or the decline in rates of tax .

HOW IT CAN BE CALCULATED

If we deduct '' R '' from the budget deficit which is federal just to obtain the CYCLICALLY ADJUSTED BUDGET DEFICIT .

R stands for

Deduction of the recession era tax revenue from the non recession era  .

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
What is a federal budget deficit and how would you reduce (eliminate) it How is a...
What is a federal budget deficit and how would you reduce (eliminate) it How is a federal budget deficit related to a national debt? What is the current level of the U.S. national debt? Which, is a heavier burden on the U.S. economy, the federal budget deficit or a national debt? why?
What impact can the government’s budget deficit have on the dollar value in the foreign exchange...
What impact can the government’s budget deficit have on the dollar value in the foreign exchange market? Can the government’s Budget Deficit cause Trade Deficits?
Which of the following explains why a budget deficit can cause a trade deficit? A) An...
Which of the following explains why a budget deficit can cause a trade deficit? A) An increase in the budget deficit raises domestic interest rates, resulting in a current account surplus and an appreciation of its currency. B) An increase in the budget deficit lowers domestic interest rates, resulting in a current account deficit and a depreciation of the currency. C) An increase in the budget deficit raises domestic interest rates, resulting in a capital account surplus and an appreciation...
how and under what conditions a sudden increase in the U.S. federal government’s budget deficit can...
how and under what conditions a sudden increase in the U.S. federal government’s budget deficit can lead ultimately to a significant loss of competitiveness of the U.S. export-oriented manufacturing sector and a significant loss of export-oriented blue collar manufacturing jobs and a shift towards import-reliant economic activity
What are the effects of budget deficit and budget surplus on the market for loanable funds?...
What are the effects of budget deficit and budget surplus on the market for loanable funds? How are these effects called? Explain the mechanism.
The federal budget A. is required to balance by law . B. can have a? deficit,...
The federal budget A. is required to balance by law . B. can have a? deficit, a? surplus, or a balance. C. can have a surplus but not a deficit. D. can have a deficit but not a surplus. E. can have a deficit or a surplus but cannot be balanced.
What are budget variances, how are they calculated, and why are they important?
What are budget variances, how are they calculated, and why are they important?
Briefly explain how a budget deficit arises and what circumstances a government may choose to run...
Briefly explain how a budget deficit arises and what circumstances a government may choose to run a deficit.
Explain how the budget deficit impacts inflation?
Explain how the budget deficit impacts inflation?
Budget deficit Congressional Budget office(CBO) estimates that the budget deficit of the fiscal year 2011 is...
Budget deficit Congressional Budget office(CBO) estimates that the budget deficit of the fiscal year 2011 is about $1.3 trillion. The deficit for 2012 was to improve little(around $1.1 trillion). The deficit for 2013 was $680 billion. Finally the deficit reduced to $483 billion for 2014. The federal budget deficit of 2015 was $439 billion. The federal budget deficit of 2016 was $534 billion. The federal budget deficit of 2017 was $668 billion. Q1) Are we going back to the budget...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT