Economics A Level: What happens if a Budget Deficit is Caused by a
1. Loose Cyclical Budget Position
2. Loose Structural Budget Position

Question

What happens if a Budget Deficit is Caused by a
1. Loose Cyclical Budget Position
2. Loose Structural Budget Position

go kys · Accepted Answer

1. This is a Cyclical Budget Deficit, and should be Balanced out by the Budget Surplus made during Boom Times
2. This is a Structural Budget Deficit, and this will Add to the National Debt

Economics A Level

What happens if a Budget Deficit is Caused by a 1. Loose Cyclical Budget Position 2. Loose Structural Budget Position

1. This is a Cyclical Budget Deficit, and should be Balanced out by the Budget Surplus made during Boom Times 2. This is a Structural Budget Deficit, and this will Add to the National Debt

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