Dynamic Analysis

CBO has devoted significant effort to developing analytical tools that enable it to assess how changes in fiscal policies would affect the economy and how such "macroeconomic feedback" would affect the federal budget. Using those tools, the agency has provided estimates of effects on the budget in various reports. To learn more about when CBO conducts such dynamic analysis, see an FAQ on this subject. (See CBO’s page Economic Effects of Fiscal Policy for additional analyses focused primarily on economic outcomes.)