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The High-Employment (Structural) Budget Deficit measures what the government budget deficit would be if:

AUnemployment were exactly zero
BThe economy were operating at potential full-employment GDP
CTax rates were doubled
DInflation were eliminated

Explanation

Structural deficit isolates discretionary fiscal policy from automatic cyclical fluctuations by measuring budget balance at full employment.

Submitted by: mcqstutor Team More Economics MCQs →

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