Economics · Public Finance and Budgetary Deficits
Consider the following pairs of fiscal deficit components and their characteristics: 1. Structural Deficit : Reflects permanent, discretionary fiscal policy choices2. Cyclical Deficit : Arises from the economy operating below potential output3. Revenue Deficit : Borrowing used specifically for the creation of durable capital assets How many of the above pairs is/are correctly matched?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1One only
- 2None
- 3Two only✓
- 4All three
Correct answer
Two only
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