Suppose we have the following information for 2010: Potential output: $22 trillion Actual output: $20 trillion...

 

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Suppose we have the following information for 2010: Potential output: $22 trillion Actual output: $20 trillion Actual Deficit: $ 600 billion Tax Rate: 20% What is the structural deficit in 2010? What could be causing the structural deficit? Suppose we have the following information for 2010: Potential output: $22 trillion Actual output: $20 trillion Actual Deficit: $ 600 billion Tax Rate: 20% What is the structural deficit in 2010? What could be causing the structural deficit?

Answer rating: 100% (QA)

The structural deficit refers to the portion of a fiscal deficit that exists even when the economy is operating at its potential output level To calcu... View the full answer