Suppose the Federal Budget Deficit for the Year Was $10

Multiple Choice

Suppose the federal budget deficit for the year was $10 billion and the economy was in a recession.If the economy had been at potential GDP, it is estimated that tax revenues would have been $6 billion higher and government spending on transfer payments $5 billion lower.Using these estimates, the cyclically adjusted budget

A) deficit was $21 billion.
B) deficit was $11 billion.
C) surplus was $1 billion.
D) surplus was $11 billion.
E) deficit was $1 billion.