A structural budget deficit is
A) The budget deficit adjusted for business cycle effects
B) The budget deficit excluding interest payments
C) The budget deficit that is sustainable in the long run
D) A budget deficit that cannot be eradicated
E) A budget deficit that occurs after a cut in taxes

Question

Quizplus · Accepted Answer

A structural budget deficit is the portion of the budget deficit that is not related to the business cycle. It represents the underlying fiscal position of a government, adjusted for the effects of the economic cycle.

A Structural Budget Deficit Is