The structural surplus
A) equals the actual surplus plus the cyclical surplus.
B) is the government budget surplus that would exist if the economy was at potential GDP.
C) is, by definition, equal to the negative of the cyclical deficit.
D) is legally required to be positive.

Question

Quizplus · Accepted Answer

The structural surplus refers to the government budget surplus that would exist if the economy were operating at its potential GDP, abstracting from the fluctuations due to the business cycle.

The Structural Surplus