The structural deficit or surplus is the
A) difference between actual government outlays and actual government receipts.
B) change in national debt that will result from current budgetary policies.
C) government budget deficit or surplus that would occur if the economy were at potential GDP.
D) actual government budget deficit or surplus minus expenditures for capital improvements.

Question

Quizplus · Accepted Answer

The structural deficit or surplus refers to the government budget deficit or surplus that would occur if the economy were operating at its potential GDP. This concept abstracts from the cyclical fluctuations in the economy to give a clearer picture of the government's fiscal position under normal economic conditions.

The Structural Deficit or Surplus Is the