If the total budget deficit is $200 billion and the deficit at full employment is $120 billion,then the
A)Cyclical deficit is $120 billion.
B)Cyclical deficit is $80 billion.
C)Structural deficit is $320 billion.
D)Structural deficit is $80 billion.

Question

Quizplus · Accepted Answer

The cyclical deficit is the difference between the actual deficit and the deficit at full employment. Therefore, the cyclical deficit is $200 billion - $120 billion = $80 billion.

If the Total Budget Deficit Is $200 Billion and the Deficit