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.

Question

Quizplus · Accepted Answer

The structural deficit is the deficit that would exist if the economy were at full employment. It is the budget deficit that remains even after the economy has fully recovered from a recession and all automatic stabilizers (such as unemployment benefits) have phased out. It is a measure of the long-term sustainability of the government's budget.

The Structural Deficit Is