The deficit that exists when the economy operates at full employment is called the __________ deficit.
A) net
B) gross
C) cyclical
D) structural

Question

Quizplus · Accepted Answer

The structural deficit refers to the part of the budget deficit that exists even when the economy is operating at full employment. It is not related to the business cycle and reflects underlying imbalances in government revenues and expenditures.

The Deficit That Exists When the Economy Operates at Full