question archive Suppose the economy is in a boom and the government is running a budget deficit
Suppose the economy is in a boom and the government is running a budget deficit
Subject:EconomicsPrice:2.88 Bought3
Suppose the economy is in a boom and the government is running a budget deficit. This implies the government is running a _____ and _____ its net debt.
a. structural surplus; decreasing
b. structural surplus; increasing
c. structural deficit; increasing
d. structural deficit; decreasing
e. structural deficit; does not change
Purchase A New Answer
Custom new solution created by our subject matter experts
GET A QUOTE
Answer Preview
Option C is correct, structural deficit; increasing.
When the economy is facing a boom and the government is facing a budget deficit which implies its net debt is growing. A budget deficit in periods of economic boom implies a structural deficit.
