The data below provides the Actual and Structural Budget Deficits,as a percentage of real GDP,for Canada between 1999 and 2010.Note that a negative value in the table indicates a budget surplus.
TABLE 31-2
-Refer to Table 31-2.Consider the years 2008-2010.The fact that the actual budget deficit in each year was greater than the structural budget deficit reflects the fact that

Question

The data below provides the Actual and Structural Budget Deficits,as a percentage of real GDP,for Canada between 1999 and 2010.Note that a negative value in the table indicates a budget surplus.
  TABLE 31-2
-Refer to Table 31-2.Consider the years 2008-2010.The fact that the actual budget deficit in each year was greater than the structural budget deficit reflects the fact that

Quizplus · Accepted Answer

The actual budget deficit being greater than the structural budget deficit indicates that the economy was operating below its potential, meaning actual GDP was less than potential GDP, leading to lower tax revenues and higher automatic stabilizer spending.

The Data Below Provides the Actual and Structural Budget Deficits,as