If the economy has a structural deficit of $25 billion and a cyclical deficit of $75, we can conclude that the current budget deficit is_________ billion.
A) $25
B) $100
C) $75
D) $50

Question

Quizplus · Accepted Answer

The current budget deficit is the sum of the structural deficit and the cyclical deficit, so $25 billion + $75 billion = $100 billion. Therefore, the correct answer is B.

If the Economy Has a Structural Deficit of $25 Billion