The structural deficit/surplus budget
a. measures the federal budget deficit/surplus as if the economy were at full employment.
b. measures the federal budget deficit/surplus as if the economy were in recession.
c. measures the federal budget deficit/surplus as if the economy were suffering from high inflation.
d. is used when structural unemployment is at a peak.
a
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Which of the following raises the price of a used car and increases the equilibrium quantity sold?
A) a new 8 percent federal excise tax placed on all new car purchases B) an increase in wages for used car salespeople C) a special rebate program on all new cars D) None of the above answers is correct
The Ricardian Equivalence proposition suggests that a tax increase that causes a budget surplus will
A) cause an increase in output. B) cause no change in output. C) cause a reduction in output. D) a reduction in consumption.