Question

Assume that in the United States the actual deficit is $300 billion. If the United States were atfull employment, the deficit would be $100 billion. The structural deficit in the United States is

A) $100 billion.
B) $200 billion.
C) $300 billion.
D) $400 billion

Answer 1

A) $100 billion.

Step-by-step explanation:

Given that

Actual deficit in the united states = $300 billion

At full employment, the deficit in the united states = $100 billion

By considering the above information, the structured deficit would be

In this case, the structural deficit in the United States is $100 billion which is equal to the deficit at full employment in the united states.