Solved

If the Actual Federal Budget Shows a Deficit but the Structural

Question 37

Multiple Choice

If the actual federal budget shows a deficit but the structural budget deficit is falling,economists would conclude that


A) the structural deficit is based on an incorrect estimate of potential output.
B) the actual budget deficit should be revised to equal the structural deficit.
C) government spending should be curtailed severely.
D) current fiscal policy is probably doing a fair job of stabilizing the economy.
E) the tax rate is too low.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents