Why do economists view structural budget deficit as a good measure of the direction of the fiscal policy?
Because it is based on the spending and taxing the government would be doing at some fixed level of GDP, rather than on actual expenditures and receipts, the structural deficit does not depend on the state of the economy. It changes only when policy changes, not when GDP changes. For that reason, most economists view it as a better measure of the thrust of fiscal policy than the actual deficit.
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A system financed primarily through retrospective fee-for-service insurance reimbursement is:
a. A closed system. b. An open-ended system. c. A cost-plus system d. An efficient system. e. Both b and c.
Cost-of-service-regulation sets prices by considering
A) the actual variable cost of providing the service to the customer. B) the actual total cost of providing the service to the customer. C) the actual average cost of providing the service to the customer. D) the actual marginal cost of providing the service to the customer.