The structural deficit is defined as
a. that part of the deficit that is so hard to remove that it is never reduced.
b. the portion of the budget deficit that occurs because the economy is not at full employment.
c. the hypothetical deficit the economy would have under current fiscal policies if the economy were operating near full employment.
d. the actual budget deficit that exists in the economy.
c
You might also like to view...
The market for used cars is shown in the above figure. Buyers cannot tell whether any given car is a lemon. Forty percent (40%) of all cars are lemons. However, sellers can switch to selling lemons at lower costs
Which of the following statements is TRUE? A) Only lemons are sold for $1,600. B) Only lemons are sold for $800. C) All the sellers of good cars will switch to selling lemons. D) 40% buyers will get lemons.
Figure 14-8
Refer to . There is excess money demand at an interest rate of
a.
2 percent.
b.
3 percent.
c.
4 percent.
d.
None of the above is correct.