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:

Elasticity

Elasticity refers to the economic concept describing the change in the behavior of buyers and sellers in response to a change in price or other factors.

Flexibility

is the quality of being able to adapt to new, different, or changing requirements, in both personal and professional contexts.

Grid Computing

A distributed architecture of large numbers of computers connected to solve a complex problem.

Scalability

The ability of a system, network, or process to handle a growing amount of work, or its potential to be enlarged to accommodate that growth.