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Question

Which of the following calculates what government revenues, expenditures, and deficits would be if the economy were operating at potential output?

A
Structural budget
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B
Cyclical budget
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C
Actual budget
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D
None of the above
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Solution

The correct option is A Structural budget
Structural budget calculates what government revenues, expenditures, and deficits would be if the economy were operating at potential output.

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