The structural deficit represents
A)Federal revenues minus federal expenditures at full employment under current fiscal policy.
B)Federal revenues minus expenditures under current fiscal policy at current output.
C)A measure of the size of recessionary or inflationary gaps.
D)The difference between expenditures at full employment and expenditures at cyclical unemployment.

Question

Quizplus · Accepted Answer

The structural deficit is the deficit that would exist even if the economy were at full employment, reflecting the difference between federal revenues and expenditures under current fiscal policy.

The Structural Deficit Represents