A cyclical deficit is the federal budget deficit that is caused by a downturn in the economy. It occurs when government revenues fall due to reduced tax receipts as a result of lower economic activity, while expenditures often increase due to higher demand for social safety net programs like unemployment benefits. This type of deficit is typically temporary and is expected to improve as the economy recovers and tax revenues increase.
A cyclical deficit is the federal budget deficit that is caused by a(n) .
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