A Structural Deficit

question 10

Multiple Choice

A structural deficit

• A)is present only if real GDP is greater than potential.
• B)exists even if real GDP equals potential.
• C)equals the cyclical deficit plus the actual deficit.
• D)is greater than a cyclical deficit.
• E)occurs when the economy is in a recession.

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Definitions:

Domestic Output

The total value of goods and services produced within a country's borders in a given time period.

Wage Rates

The amount of money paid to an employee per unit of time (e.g., hour, day) or for a specific quantity of work done.

Wages

Payments made to employees for their labor or services, typically calculated on an hourly, daily, or piecework basis.

Migration

The movement of persons from one country or locality to another for the purpose of employment, better living conditions, or other reasons.