If the governmentʹs budget is in surplus even when the economy is at full employment, the surplus is said to be
A) structural.
B) discretionary.
C) cyclical.
D) persisting.

Question

Quizplus · Accepted Answer

A surplus that persists even during full employment suggests that it is a structural surplus, meaning it is a result of long-term changes in the economy or government policies rather than temporary fluctuations in the business cycle. Discretionary refers to deliberate changes in government spending or taxation, while cyclical refers to changes in the budget that are a result of fluctuations in the business cycle. Persisting is too vague of a term and does not relate directly to the concept of budget surpluses.

If the Governmentʹs Budget Is in Surplus Even When the Economy