Why Do Economists Think That the Structural Deficit Is a Good

question 162

Multiple Choice

Why do economists think that the structural deficit is a good measure of the direction of fiscal policy?

• A)Because it adjusts over the business cycle and reflects the fiscal stimulus of policy.
• B)Because it changes when policy changes, rather than when the economy changes.
• C)Because it changes when monetary policy changes, reflecting the interest rate cost of debt.
• D)Because it adjusts automatically, rather than requiring specific legislation.

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Definitions:

Extrapyramidal Side Effects

Unwanted movement disorders or symptoms that can occur as a result of certain psychiatric and neurological medications.

First-Generation Antipsychotic

A class of older antipsychotic medications primarily used to treat psychotic disorders, known for their dopaminergic blockade mechanism and side effects like extrapyramidal symptoms.

Dosage

The specific amount of medication prescribed to be taken at one time or over a particular period.

Synergistic Effect

In pharmacology, an increase of effects that occurs when more than one substance is acting on the body at the same time.