The structural deficit/surplus budget
A)measures the federal budget deficit/surplus as if the economy were at full employment.
B)measures the federal budget deficit/surplus as if the economy were in recession.
C)measures the federal budget deficit/surplus as if the economy were suffering from high inflation.
D)is used when structural unemployment is at a peak.

Question

Quizplus · Accepted Answer

The structural deficit/surplus budget measures the federal budget deficit/surplus as if the economy were at full employment, meaning it takes into account the long-term spending and revenue trends of the government, regardless of the current state of the economy. This allows policymakers and analysts to assess the sustainability of government finances over time.

The Structural Deficit/surplus Budget