Figure13-9The Actual Budget Deficit versus the Cyclically Adjusted Budget Deficit The cyclically adjusted budget deficit is an estimate of what the budget deficit would be if the economy were at potential output. It fluctuates less than the actual budget deficit because large budget deficits tend to occur during the same years when the economy has a large recessionary gap.
Sources: Statistics Canada; Public Accounts of Canada; Department of Finance.
Sources: Statistics Canada; Public Accounts of Canada; Department of Finance.