The structural deficit:
A) rises as the economy expands and falls when it contracts.
B) falls as the economy expands and rises when it contracts.
C) changes as actual income changes regardless of potential income.
D) does not change when income changes, but changes only when potential income changes.
Correct Answer:
Verified
Q5: In the short-run framework, budget deficits should:
A)never
Q7: A budget deficit is defined as:
A)a shortfall
Q11: The portion of the budget deficit or
Q21: If an economy operates below potential income,
Q24: The budget deficit or surplus is:
A)well defined
Q32: If taxes and government expenditures were constant
Q33: When the economy is operating close to
Q34: A policy of fiscal austerity could have
Q36: The cyclical deficit:
A)is not affected by changes
Q37: Economists who focus on the need for
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