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3. If there is a structural deficit, then on average the debt-to-GDP ratio will be rising.
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A structural deficit occurs when the economy operates at full employment. here government expenditure is larger than its revenue. thus, debt starts accumulating. The debt is an accumulation of deficit.

Hence, whenever there is a structural deficit, the debt will rise. hence. the Debt to GDP ratio will also rise. Output can not rise beyond this point. Hence, debt to GDP ratio will rise.

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