The Cyclically Adjusted Budget Deficit for the United States

Multiple Choice

The cyclically adjusted budget deficit for the United States

A) rose to âˆ'7.1 percent of potential GDP in 2009 but has since declined.
B) was zero in 2009, but the cyclical deficit created by the recession was âˆ'7.1 percent of potential GDP.
C) changed to a surplus in 2009.
D) rose to âˆ'10.1 percent of potential GDP in 2009 but has since declined.