The structural budget deficit calculates the budget surplus or deficit if the economy was:
A)in recession.
B)at potential GDP.
C)producing above potential GDP.
D)producing below potential GDP.

Question

Quizplus · Accepted Answer

The structural budget deficit is calculated assuming the economy is at its potential GDP, which means it is neither in a boom nor a recession, but operating at a level of output that reflects its long-term capacity.

The Structural Budget Deficit Calculates the Budget Surplus or Deficit