If the economy's full-employment output is $12 trillion, actual output is $12 trillion, and the budget deficit is $40 billion, the deficit in this case is known as a

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Quizplus · Accepted Answer

The deficit is known as a structural deficit because it exists even when the economy is at its full-employment output, indicating that it is due to the underlying structure of the government's budget policy rather than economic fluctuations.

If the Economy's Full-Employment Output Is $12 Trillion, Actual Output