Macroeconomics

Cyclical unemployment:

The unemployment

associated with short-run economic fluctuations; 

the deviation of the unemployment rate from the

natural rate.

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.

Debt-deflation:

A theory according to which an

unexpected fall in the price level redistributes real

wealth from debtors to creditors and, therefore, re-

duces total spending in the economy.

Deflation:

A decrease in the overall level of prices.

(Cf. disinflation, inflation.)

Deflator:

See GDP deflator.