If the economy is in a recession, and the government has a budget deficit, then there

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A structural surplus or deficit refers to the budget balance that would exist if the economy were at its potential level of output. During a recession, the actual budget deficit may be larger than the structural deficit due to cyclical factors, such as lower tax revenues and higher welfare payments. However, whether there is a structural surplus or deficit depends on the underlying fiscal policy, independent of the economic cycle.

If the Economy Is in a Recession, and the Government