Cyclically adjusted budget deficit

Cyclically adjusted budget deficit is the budget deficit adjusted for the influence of the business cycle on government spending and tax revenue; the budget deficit that would occur if the economy's production and employment were at their natural levels. Also called full-employment budget deficit.

Definition

According to Macroeconomics by Mankiw (7th edition),

Cyclically adjusted budget deficit. The budget deficit adjusted for the influence of the business cycle on government spending and tax revenue; the budget deficit that would occur if the economy's production and employment were at their natural levels. Also called full-employment budget deficit.