The structural deficit is equal to expenditures
A)plus transfers less taxes for the fiscal year in government statistics.
B)less taxes at some hypothetical high employment level.
C)plus transfers less taxes at some hypothetical high employment level.
D)less transfers for the fiscal year in government statistics.

Question

Quizplus · Accepted Answer

The structural deficit is calculated as expenditures plus transfers less taxes, but at a hypothetical level of high employment, rather than actual fiscal year data. This approach aims to estimate the deficit excluding the effects of the economic cycle.

The Structural Deficit Is Equal to Expenditures