The Cyclically Balanced Budget Is Important Because It

Multiple Choice

The cyclically balanced budget is important because it:

A) is an estimate of the amount of expansionary fiscal policy necessary to close an inflationary gap.
B) is an estimate of the amount of contractionary fiscal policy necessary to close a recessionary gap.
C) indicates the amount of tax revenue that will be available for implicit liabilities.
D) helps to determine whether the government's taxing and spending policies are sustainable in the long run.