A structural deficit is one where
A) imports are greater than exports.
B) government spending and income is disrupted by the deviations in the 'normal' economic cycle.
C) a government's deficit is not dependent on movements in the economic cycle.
D) all of these.

Question

Quizplus · Accepted Answer

A structural deficit occurs when a government's spending exceeds its revenue, regardless of movements in the economic cycle. It is not related to imports or exports. In contrast, a cyclical deficit is caused by the ups and downs of the economy. Therefore, option C is the correct answer.

A Structural Deficit Is One Where