If the economy's full-employment output is $9 trillion, actual output is $9 trillion, and the budget deficit is $20 billion, the deficit in this case is known as a

A. fiscal deficit.
B. structural deficit.
C. natural employment deficit.
D. cyclical deficit.

Answer: B

Economics

You might also like to view...

According to the Monetarists a decrease in investment spending initially __________ unemployment so that the price level __________. The resulting __________ in the real money supply __________ spending

A) increases; rises; increase; decreases B) increases; falls; increase; increases C) increases; falls; increase; decreases D) decreases; rises; increase; increases

Economics

If an Albanian company hires a U.S.-based law firm, it is

A) insourcing, from a U.S.-perspective. B) using domestic outsourcing. C) changing into a multinational enterprise. D) vertically integrating.

Economics