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The Size of the Structural Deficit

Question 40

Multiple Choice

The size of the structural deficit


A) can be used to evaluate the extent to which government fiscal policy is promoting economic stability.
B) generally exceeds the actual budget surplus or deficit in a given fiscal year.
C) generally equals actual budgetary deficits and surpluses.
D) is greater during those years when a full-employment equilibrium GDP prevails.
E) automatically nets out to zero over the course of the business cycle.

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