The Size of the Structural Deficit

question 66

Multiple Choice

The size of the structural deficit

• A) can be used to evaluate the extent to which government fiscal policy is promoting economic stability.
• B) generally exceeds the actual budget surplus or deficit in a given fiscal year.
• C) generally equals actual budgetary deficits and surpluses.
• D) is greater during those years when a full-employment equilibrium GDP prevails.
• E) automatically nets out to zero over the course of the business cycle.

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Definitions:

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