The structural deficit is the deficit
A)in a recession.
B)in an expansion.
C)that would occur at potential GDP.
D)caused by the business cycle.
E)that would occur at the trough of the business cycle.

Question

Quizplus · Accepted Answer

The structural deficit is the deficit that would occur at potential GDP, meaning that it is not due to the business cycle fluctuations but rather due to structural issues within the economy, such as long-term spending patterns and tax policies.

The Structural Deficit Is the Deficit