If the structural budget balance is deficit of about $100 billion and the actual budget balance is a deficit of about $150 billion, it can be concluded that there is:

Question

Quizplus · Accepted Answer

The difference between the structural budget deficit ($100 billion) and the actual budget deficit ($150 billion) suggests that the larger deficit is due to cyclical factors, such as a recession, which reduces tax revenues and increases spending on unemployment benefits and other social safety nets, rather than a deliberate policy choice.

If the Structural Budget Balance Is Deficit of About $100