Suppose the Government's Actual Budget Deficit Is Equal to the Structural

question 40

Multiple Choice

Suppose the government's actual budget deficit is equal to the structural budget deficit.Then it must be the case that

• A)the primary budget deficit is zero.
• B)the overall government budget is balanced.
• C)the debt-to-GDP ratio is stable.
• D)real GDP is equal to potential GDP.
• E)the government is not reporting all of its expenses.

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Definitions:

Complex Carbohydrates

Carbohydrates consisting of long chains of sugar molecules, providing sustained energy and found in foods like grains, fruits, and vegetables.

Drive Reduction

A theory of motivation suggesting that behavior is motivated by the desire to reduce internal drives caused by unmet physiological needs.

Food Deprivation

The state of being kept from food, leading to feelings of hunger and possibly affecting physical and mental health.

Basal Metabolic Rate

A measure of the amount of energy expended while at rest in a neutrally temperate environment; it reflects the energy required to maintain the body's basic physiological functions.