If the government's budget is in surplus even when the economy is at full employment, the surplus is said to be
A) persisting.
B) cyclical.
C) discretionary.
D) structural.

Question

Quizplus · Accepted Answer

A structural surplus occurs when a government's revenues exceed its expenditures over a fiscal period, assuming the economy is operating at full employment. This means the surplus is not due to temporary economic conditions but is built into the government's budgetary structure. Cyclical surplus or deficit, on the other hand, would depend on the economic cycle, and discretionary refers to policy choices. Persisting is not a term used to describe the nature of a budget surplus in economic terms.

If the Government's Budget Is in Surplus Even When the Economy