The Structural Deficit Is the Deficit

question 11

Multiple Choice

The structural deficit is the deficit

• A)that would occur at potential GDP.
• B)that would occur at the trough of the business cycle.
• C)in an expansion.
• D)in a recession.
• E)caused by the business cycle.

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Definitions:

Adjusting Entries

Accounting record entries created at the conclusion of an accounting cycle to assign revenues and expenses to the time they truly took place.

Reversing Entries

At the start of a new accounting period, entries are recorded to negate or undo the adjustments that were made at the conclusion of the prior period.

Salaries Expense

The total amount paid to employees for services rendered during a specific period, recorded as an expense on the income statement.

Accounts Payable

Money owed by a company to its suppliers or vendors for goods and services purchased on credit.