If the cyclical deficit shrank by $60 billion while the structural deficit increased by $35 billion,the total deficit
A)Fell by $25 billion.
B)Grew by $25 billion.
C)Grew by $95 billion.
D)Fell by $60 billion.

Question

Quizplus · Accepted Answer

The total deficit decreased because the cyclical deficit (which is part of the total deficit) shrank by $60 billion, offsetting the $35 billion increase in the structural deficit, leading to a net decrease of $25 billion ($60 billion - $35 billion = $25 billion).

If the Cyclical Deficit Shrank by $60 Billion While the Structural