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If there is a structural deficit at full employment then G is still _________.

A. contractionary
B. neutral
C. expansionary
D. none of the above

User EXODIA
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Answer:

C. expansionary

Step-by-step explanation:

If there is a structural deficit at full employment then Government Spending (G) is still expansionary. This is when the government expands the money supply within the economy, in order to either increase spending or cut taxes. This is done in order to get more money into the hands of consumers and business to spend and help move the wheels of the economy.

User CAOakley
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