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Cyclical adjustment


The adjustment of figures such as gross domestic product, government spending, or the budget deficit to show what they would be if total activity was at its trend or normal level. This is usually done in the framework of a particular model showing how these aggregates are related to the level of activity, and a model of the long-run trend in activity; thus, the results obtained using different models may differ.


Reference: Oxford Press Dictonary of Economics, 5th edt.