If the economy's full-employment output is $9 trillion, actual output is $9 trillion, and the budget deficit is $20 billion, the deficit in this case is known as a

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Quizplus · Accepted Answer

The deficit in this case is known as a structural deficit because it exists even when the economy is at its full-employment output, indicating that it is not related to the business cycle but rather to the underlying fiscal policy.

If the Economy's Full-Employment Output Is $9 Trillion, Actual Output