At the start of 2013, the U.S. government predicted that economic growth would rise by 2016 and that the government's deficit would also increase. The government therefore was predicting that in 2016 the cyclical deficit would ________ and the structural deficit would ________.
A) increase; increase
B) decrease; increase
C) increase; decrease
D) decrease; decrease

Question

Quizplus · Accepted Answer

The cyclical deficit is expected to decrease as economic growth improves (reducing the deficit caused by economic cycles), while the structural deficit, which is independent of the economic cycle, would increase if government spending policies or long-term economic challenges are not addressed.

At the Start of 2013, the U