The actual and structural budget balances will be equal when the economy is at potential output.

Name: The actual and structural budget balances will be equal when the economy is at potential output.
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Question

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The actual budget balance equals the structural budget balance when the economy is at its potential output because the structural balance is designed to show the budget balance independent of the business cycle, assuming the economy is operating at its potential.

The Actual and Structural Budget Balances Will Be Equal When