Suppose That the Economy Has a Structural Surplus of $100

question 75

Multiple Choice

Suppose that the economy has a structural surplus of $100 billion and is operating above potential output. From this we can infer that the budget as a whole:

• A)is in deficit.
• B)is balanced.
• C)is in surplus.
• D)could be in deficit or surplus depending on the size of the cyclical deficit.

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