Suppose the deficit were to be $300 billion during normal times, but increases to $500 billion because
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Suppose the deficit were to be $300 billion during normal times, but increases to $500 billion because we are in a recession, then increases again to $600 billion because the government attempts to stimulate the economy. Which of these amounts are the structural deficit and the cyclical deficit and which amount represents functional finance?
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300 billion is the structural deficit because it is the deficit when there are no adverse economic ...View the full answer
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Fahid Fayaz
I did my graduation from Aligarh Muslim University with 7.7 CGPA. I have almost tutored from class 12th the previous year students. I am have done Masters in Madras School of Economics with specialization in Financial Economics.
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