The structural deficit:
A. does not change when actual income changes; it but changes only when potential income changes.
B. falls as the economy expands and rises when it contracts.
C. rises as the economy expands and falls when it contracts.
D. changes as actual income changes regardless of potential income.
Answer: A
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Other things equal, the deadweight loss of a tax
a. decreases as the size of the tax increases. b. increases as the size of the tax increases, but the increase in the deadweight loss is less rapid than the increase in the size of the tax. c. increases as the size of the tax increases, and the increase in the deadweight loss is more rapid than the increase in the size of the tax. d. increases as the price elasticities of demand and/or supply increase, but the deadweight loss does not change as the size of the tax increases.
By the start of the 21st century, the developed economies with the largest national debt relative to GDP were
a) US and Spain b) Italy and Japan c) France and Germany d) Australia and New Zealand e) Norway and Ireland