7.What is meant by the "time inconsistency"of economic policy?Why might policymakers be tempted to renege on an announcement they made earlier?In this situation,what is the advantage of a policy rule? 8.The cyclically adjusted budget deficit is the budget deficit corrected for the effects of the business cycle.In other words,it is the budget deficit that the employment were at th natural rate.(It is full-employment budget deficit.)Some economists have proposed the rule that the cyclically adjusted budget deficit always be balanced.Compare this proposal to a strict balanced-budget rule.Which is preferable?What problems do you see with the rule requiring a balanced cyclically adjusted budget? 9.Describe the evidence that was consistent with Keynes's conjectures and the evidence that wa s in nsistent ith th7.What is meant by the “time inconsistency’’ of economic policy? Why might policymakers be tempted to renege on an announcement they made earlier? In this situation,what is the advantage of a policy rule? 8.The cyclically adjusted budget deficit is the budget deficit corrected for the effects of the business cycle. In other words,it is the budget deficit that the government would be running if unemployment were at the natural rate.(It is also called the full-employment budget deficit.)Some economists have proposed the rule that the cyclically adjusted budget deficit always be balanced.Compare this proposal to a strict balanced-budget rule.Which is preferable?What problems do you see with the rule requiring a balanced cyclically adjusted budget? 9.Describe the evidence that was consistent with Keynes’s conjectures and the evidence that was inconsistent with them