The structural deficit is the deficit that occurs when
A) real GDP departs from potential GDP.
B) real GDP equals potential GDP.
C) aggregate demand is greater than short-run aggregate supply.
D) short-run aggregate supply is greater than aggregate demand.

Question

Quizplus · Accepted Answer

The structural deficit is the part of the budget deficit that exists even when the economy is at its potential GDP, meaning real GDP equals potential GDP.

The Structural Deficit Is the Deficit That Occurs When