The structural deficit does not depend on the state of the economy.
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a. |
True |
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b. |
False |
False,
According to definition of structural deficit,it is a deficit that is causes even when the economy is performing at its full potential .
The full potential can be due to the rise in employment levels ,spending by the government or infrastructural development etc .
So can we say that structural sexual deficit depends on the state of economy
The structural deficit does not depend on the state of the economy. a. True b. False
The actual budget deficit is equal to the : a)structural deficit plus the cyclical deficit b)structural deficit minus the cyclical deficit. c)cyclical deficit. d)structural deficit
True or false: A larger current account deficit cannot occur unless the government budget deficit increases or households save less. Briefly explain your answer. Explain the results of a contractionary fiscal policy implemented in a fixed exchange rate regime economy
The structural deficit can be defined as a. the deficit that is structurally obstructing economic recovery to reach level of high employment. b. a hypothetical construct that estimates the deficit, given current tax rates and expenditure policies, if the economy were operating at some fixed high-employment level. c. the deficit necessary to restructure the economy and reach a desired high-employment level. d. the deficit that would prevail if fiscal policy were structured differently in order to reach a desired high-employment...
The return for Target stock next year will depend on the state of the economy. The economy may be bad, good, or great. You will find the probabilities associated with each state of the economy and the corresponding returns in the table below. What is the expected return on Target stock? Economy Probability Return Bad 30% -12.40% Good 55% 8.30% Great 15% 17.10% A. 8.30% B. 6.41% C. 3.41% D. 4.33%
Deficit spending will not cause much inflation if the economy is operating near full employment. a. True b. False
the time constant for an rc circuit does not depend on the voltage supply. true or false
Choose all the correct answer. The structural deficit/surplus is The hypothetical amount when the economy is producing at full-employment The hypothetical budget when the government expenditure is equal to taxation Dependent on the economic conditions Change only when the fiscal program change (assuming that the potential GDP is unchanged)
True or false? Explain your answer. a. An closed economy have a lower unemployment rate in the long run than a opened economy. b. The government may issue more currencies to make up for the budget deficit, which will cause the exchange rate of the national currency to depreciate. The government may issue national bonds to make up for the budget deficit, which will cause the exchange rate of the national currency to appreciate.
If the actual budget deficit is $120 billion, the economy is operating $200 billion above its potential, and the marginal tax rate is 10 percent, what are the structural deficit or surplus and the cyclical deficit or surplus? The structural _____ is $________. The cyclical ______ is $________.
The following table shows data on frictional, cyclical, structural, and total unemployment for an economy. Unemployment Type Frictional Rate (Percent) 3.6 0.0 Cyclical Structural Total unemployment True or False: This economy is currently at its natural rate of unemployment. True O False