The actual budget deficit is equal to the
A) structural deficit minus the cyclical deficit.
B) structural deficit.
C) structural deficit plus the cyclical deficit.
D) cyclical deficit.

Question

Quizplus · Accepted Answer

The actual budget deficit is the overall deficit observed in a given year and is the sum of structural deficit (which is the deficit that exists even at full employment and stable economic conditions) and cyclical deficit (which is the deficit caused by fluctuations in the economy). Therefore, the actual budget deficit is equal to the structural deficit plus the cyclical deficit.

The Actual Budget Deficit Is Equal to the