The Structural Deficit Is That Deficit That Would Exist

question 12

Multiple Choice

The structural deficit is that deficit that would exist

• A) with the taxes and outlays that would occur if the economy was at the equilibrium level of real GDP.
• B) with the taxes and outlays that would occur if the economy was at the full employment level of real GDP.
• C) if tax rates were set to maximize tax revenues.
• D) if there were no discretionary fiscal interventions into the economy.

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Definitions:

Mutually Exclusive

Two events or propositions that cannot both be true or occur at the same time.

Jointly Exhaustive

A set of options or categories is collectively comprehensive, covering all possible scenarios or outcomes.

Consistent Principle

A rule or concept that does not contradict itself and remains uniform across various situations or applications.

Essential Attributes

Fundamental qualities or characteristics that define or make up the essence of something.