Cyclical Deficit
Definition
The portion of a budget deficit driven by the business cycle — automatically larger in recessions, smaller in booms.
Example
Tax revenues fell sharply in 2009, widening the cyclical deficit even before stimulus.
The portion of a budget deficit driven by the business cycle — automatically larger in recessions, smaller in booms.
Tax revenues fell sharply in 2009, widening the cyclical deficit even before stimulus.