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:
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Q32: The national debt differs from consumer debt
Q33: An outcome associated with a large national
Q34: The size of the structural deficit tells
Q35: Q36: Balancing the government's budget every year Q38: If the actual federal budget shows a Q39: The idea that,under certain circumstances,deficits can increase Q40: The size of the structural deficit Q41: In general,appropriate fiscal policy would involve a Q42: A budget policy in which the government![]()
A) is
A) can
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