If the budget deficit is $50 billion and the structural deficit is $10 billion, the cyclical deficit is
A)$50 billion
B)$10 billion.
C)$60 billion.
D)$40 billion.
E)$20 billion.

Question

Quizplus · Accepted Answer

The cyclical deficit is the difference between the actual budget deficit and the structural deficit. Therefore, the cyclical deficit is $50 billion (actual budget deficit) - $10 billion (structural deficit) = $40 billion.

If the Budget Deficit Is $50 Billion and the Structural