Final answer:
If an economy with a zero cyclically-adjusted budget deficit enters a recession, the actual government budget will be in deficit due to the impact of automatic stabilizers, which increase government spending and decrease tax revenues during economic downturns.
Step-by-step explanation:
When the cyclically-adjusted budget deficit in an economy is zero and the economy goes into recession, the actual government budget will likely be in deficit. This occurs because automatic stabilizers, such as tax revenues decreasing and government spending on social programs increasing, come into effect when economic activity drops. These adjustments are made to support the economy during downturns and are expected to lead to a higher actual budget deficit than the cyclically-adjusted budget, especially when the economy is below its potential GDP.
Most economists agree that the budget deficits and surpluses will fluctuate with the performance of the economy due to the effect of automatic stabilizers, which are designed to mitigate the severity of economic fluctuations. During recessions, these stabilizers typically lead to larger deficits or smaller surpluses without deliberate policy interventions.