The structural deficit is
A)The deficit that would exist if the economy were at full employment.
B)Computed on the basis of the current value of automatic stabilizers.
C)Determined by the president of the United States.
D)Equivalent to the GDP gap.

Question

Quizplus · Accepted Answer

Structural deficit is the deficit that would exist if the economy were at full employment. It is the portion of the deficit that is not caused by temporary fluctuations in the economy, but rather by long-term spending patterns and revenue policies.

The Structural Deficit Is