P9r5ettejenyd P9r5ettejenyd
  • 14-04-2017
  • Business
contestada

If the structural budget deficit is $100 billion and the actual deficit is $300 billion, what is the size of the cyclical deficit?

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MissPhiladelphia
MissPhiladelphia MissPhiladelphia
  • 27-04-2017
Cyclical deficit is the downfall of the business cycle, this usually occurs when the economy is beneath potential income. The formula for this is, CD= tax rate x ( potential deficit - actual deficit). Therefore, the cyclical deficit is $200.  I hope this helps.
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