14. Which of the following is true?

A) When the economy is in recession, the cyclically adjusted budget deficit is lower

than the reported deficit.

B) In periods of economic expansion, the cyclically adjusted budget deficit is lower

than the reported deficit.

C) The reported budget deficit always equals the cyclically adjusted budget deficit

with automatic stabilizers during recessions.

D) The reported budget deficit always equals the cyclically adjusted budget deficit

with automatic stabilizers during expansions.

E) None of the answers is correct.