If the budget deficit is $50 billion and the structural deficit is $10 billion, the cyclical deficit is

Question

Quizplus · Accepted Answer

The cyclical deficit is the portion of the budget deficit that is due to economic conditions, such as a recession or a boom. The structural deficit represents the portion of the deficit that would exist even if the economy was at full employment. Therefore, to calculate the cyclical deficit, we need to subtract the structural deficit from the total deficit; in this case, $50 billion - $10 billion = $40 billion.

If the Budget Deficit Is $50 Billion and the Structural