An economy's structural budget _____.
A) is not adjusted for the effect of business cycles
B) shows a surplus at the full employment level
C) shows a deﬁcit at the full employment level
D) is zero at the full employment level

Question

Quizplus · Accepted Answer

The structural budget is adjusted for the effects of the business cycle and is balanced (zero) at the full employment level, indicating no cyclical deficit or surplus.

An Economy's Structural Budget _____