Regarding structural deficits, which of the following assertions is true?
A)The structural deficit depends on the state of the economy.
B)The structural deficit is based on actual expenditures and receipts.
C)The structural deficit changes only when policy changes.
D)The structural deficit changes when GDP changes.

Question

Quizplus · Accepted Answer

The structural deficit refers to the part of the budget deficit that exists independent of the business cycle, meaning it does not change with the economy's fluctuations but rather changes only when there is a change in fiscal policy, such as adjustments in government spending or taxation.

Regarding Structural Deficits, Which of the Following Assertions Is True