When an economy is above full employment and the government has a budget deficit, that deficit
A) is less than the structural deficit.
B) exceeds the structural deficit.
C) is equal to the cyclical deficit minus the structural deficit.
D) is equal to the cyclical deficit.
E) is equal to the structural deficit minus the cyclical deficit.
A
You might also like to view...
A specific type of loan that is used to buy real estate:
a. mutual fund b. mortgage c. millage note d. deed bond
Which of these is a central argument of Keynes's General Theory? a. Competition does not allocate resources efficiently in a modern industrial economy
b. Full employment can be maintained even during a major recession if wage rates are lowered far enough. c. Modern industrial economies do not tend automatically toward full employment rates of output. d. Money does not play an important role in either causing or curing recession. e. Government can best stabilize the economy by letting the market system automatically adjust toward full employment.