A fall in the government budget balance caused by a recession will automatically reduce the structural budget balance.

Name: A fall in the government budget balance caused by a recession will automatically reduce the structural budget balance.
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A fall in the government budget balance caused by a recession affects the cyclical component of the budget, not the structural budget balance, which is adjusted for the economic cycle and reflects the underlying fiscal position of the government.

A Fall in the Government Budget Balance Caused by a Recession