The structural surplus is

Question

Quizplus · Accepted Answer

The structural surplus is identical to the natural employment surplus and it increases whenever the natural level of output increases. This is because as the economy approaches its full potential, there is less slack in the labor market, and therefore the actual surplus exceeds the natural employment surplus, creating a structural surplus. Additionally, as the natural level of output (i.e. potential GDP) increases, the amount of slack in the labor market decreases, leading to an increase in the structural surplus.

The Structural Surplus Is