Multiple Choice
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.
Correct Answer:

Verified
Correct Answer:
Verified
Q5: If the aggregate supply curve has its
Q6: Suppose that the economy is currently at
Q6: The main reason that the deficit grows
Q7: In actual practice, does the Fed monetize
Q8: If the government ran a major deficit,
Q9: Surge in government demand (G) discourages some
Q12: The Fed and the government are working
Q13: Smaller budget deficits and looser monetary policy
Q14: Deficit spending boosts aggregate demand.
Q15: A budget deficit is best defined as