In 2016, Canada had

Question

In 2016, Canada had

Quizplus · Accepted Answer

In 2016, Canada had both a structural deficit and a cyclical deficit. A structural deficit occurs when the government's fiscal balance is negative even at the peak of an economic cycle, indicating that spending exceeds revenue not due to economic downturns but because of the structure of the budget. A cyclical deficit happens when the economy is in a downturn, leading to lower tax revenues and higher welfare payments, exacerbating the government's fiscal deficit.

In 2016, Canada Had