A Structural Deficit Occurs When the Government Budget Has a Deficit

question 189

Multiple Choice

A structural deficit occurs when the government budget has a deficit

• A) even though real GDP is less than potential GDP.
• B) even though real GDP is greater than structural GDP.
• C) even though real GDP is equal to potential GDP.
• D) that is nominal, as opposed to a real budget deficit.

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Definitions:

Control Accounts

General ledger accounts that consolidate and summarize the detailed information from subsidiary ledgers.

Subsidiary Accounts

Detailed accounts linked to a general ledger account that record individual transactions related to that ledger's balance.

General Ledger Control Accounts

Accounts used to summarize the total balances of several subsidiary accounts, facilitating the reconciliation and reporting process.

Subsidiary Ledgers

Detailed ledgers that contain information supporting accounts listed in the general ledger, such as details on accounts receivable, accounts payable, etc.