An "adjusted budget" is typically referred to as a "structural budget" or "cyclically adjusted budget." This type of budget accounts for changes in revenue and expenditure that result from the economic cycle, allowing policymakers to assess the underlying fiscal position without the effects of economic fluctuations. By using a structural budget, one can evaluate whether the fiscal policy is expansionary (stimulating the economy), contractionary (restricting economic activity), or neutral (neither stimulating nor restricting the economy), based on the adjusted fiscal stance.
A(n) adjusted budget is used to assess the discretionary fiscal policy and determine whether it is expansionary, contractionary, or neutral.
1 answer