A structural deficit occurs when the government budget has a deficit
A) even though real GDP is less than potential GDP.
B) even though real GDP is equal to potential GDP.
C) that is nominal, as opposed to a real budget deficit.
D) even though real GDP is greater than structural GDP.
Correct Answer:
Verified
Q124: Automatic fiscal policy occurs
A) because government expenditures
Q125: During an expansion, tax revenues _, while
Q126: Needs-tested spending _during recessions and _during expansions.
A)
Q127: During an expansion, tax revenues _and government
Q128: Because of automatic fiscal policy, when real
Q130: When an economy is above full employment
Q131: The structural deficit is the deficit
A) caused
Q132: The structural deficit is the deficit that
Q133: The government budget deficit tends to decrease
Q134: The structural deficit or surplus is the
A)
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