The actual budget deficit is equal to the
A) structural deficit.
B) cyclical deficit.
C) structural deficit minus the cyclical deficit.
D) structural deficit plus the cyclical deficit.

Question

Quizplus · Accepted Answer

The actual budget deficit is the sum of the structural deficit (which is the deficit that remains at a natural level of unemployment when the economy is operating at its potential) and the cyclical deficit (which is the deficit that occurs because of the cyclical position of the economy, i.e., during recessions or booms).

The Actual Budget Deficit Is Equal to the