In December 2012 the Structural Deficit Was Estimated to Be

question 160

Multiple Choice

In December 2012 the structural deficit was estimated to be $325 billion and the cyclical deficit was estimated to be $700 billion. That means that the actual budget deficit equaled ________ billion.

• A) $1,025
• B) $375
• C) $700
• D) None of the above answers are correct.

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Definitions:

Equilibrium Level

The state in which market supply and demand balance each other, resulting in stable prices and quantities.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price in a specified time period.

Quantity Supplied

The quantity of a product or service that sellers are ready and capable of offering for sale at a specific price during a certain timeframe.

Product Market

The marketplace in which final goods or services are offered to consumers, businesses, and the public sector.