Economists refer to the government budget balance which exists when the economy is operating at potential output as a:

Question

Quizplus · Accepted Answer

The term "structural budget balance" refers to the government's budget balance when the economy is operating at its potential output, abstracting from the fluctuations due to the business cycle. This concept is used to analyze the underlying fiscal position of a government, excluding temporary effects of economic cycles.

Economists Refer to the Government Budget Balance Which Exists When