Regarding structural deficits, which of the following assertions is true?
A)The structural deficit depends on the state of the economy.
B)The structural deficit is basded on actual expenditures and receipts.
C)The structural deficit change only when policy changes.
D)The structural deficit changes when GDP changes.

Question

Regarding structural deficits, which of the following assertions is true?
A)​The structural deficit depends on the state of the economy.
B)​The structural deficit is basded on actual expenditures and receipts. 
C)​The structural deficit change only when policy changes. 
D)​The structural deficit changes when GDP changes.

Quizplus · Accepted Answer

The structural deficit is the part of the budget deficit that remains even when the economy is at full potential, and it changes primarily due to policy changes, not economic fluctuations.

Regarding Structural Deficits, Which of the Following Assertions Is True