The structural deficit is the deficit
A) during a recession.
B) during an expansion.
C) that would occur at full employment.
D) caused by the business cycle.

Question

Quizplus · Accepted Answer

The structural deficit is the portion of the government's deficit that would exist even if the economy were at full employment, meaning it is not influenced by the state of the business cycle but rather by underlying fiscal policies.

The Structural Deficit Is the Deficit