What is a cyclically adjusted budget deficit or surplus, and how is it used to determine whether discretionary fiscal policy is expansionary or contractionary?

What will be an ideal response?

The cyclically adjusted budget deficit or surplus is the deficit or surplus in the federal government's budget if real GDP equaled potential GDP. If the government is running a cyclically adjusted budget deficit, discretionary fiscal policy is expansionary because aggregate expenditure is increasing. If the government is running a cyclically adjusted budget surplus, discretionary fiscal policy is contractionary because aggregate expenditure is decreasing.