The Structural Budget Surplus Is the Size of the Budget

question 126

Multiple Choice

The structural budget surplus is the size of the budget surplus when

• A)there is a spending balance.
• B)the AD curve intersects the IA line.
• C)the unemployment rate is zero.
• D)the economy is in an expansion.
• E)real and potential GDP are equal.

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Definitions:

Geometric Mean

A mean or average which indicates the central tendency or typical value of a set of numbers by using the product of their values (as opposed to the arithmetic mean which uses their sum).

Median

A statistical measure that represents the middle value of a dataset when it's ordered from smallest to largest.

Mode

The value that appears most frequently in a data set.

Deviations

Differences between observed values and the average or expected values in a data set.