When the economy is operating close to potential, the budget deficit experienced is:
A) primarily cyclical.
B) primarily structural.
C) neither structural nor cyclical.
D) about evenly split between structural and cyclical.
Correct Answer:
Verified
Q28: If a cyclical surplus exists, the economy
Q29: During World War II, the economic boom
Q30: If actual income is $300 billion, potential
Q31: If actual income is $300 billion, potential
Q32: If taxes and government expenditures were constant
Q34: A policy of fiscal austerity could have
Q35: The structural deficit:
A)rises as the economy expands
Q36: The cyclical deficit:
A)is not affected by changes
Q37: Economists who focus on the need for
Q38: Compared to the predictions of the standard
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