Suppose that during a crisis, the actual primary deficit hascontinuously remained less than the cyclically adjusted primarydeficit. Other things being equal, for debt to remain sustainable,which of the following is true?а.The economy will have to run a larger budget surplus;O b. If the cyclical deficit is very large, the actual deficit willhave to be even lower than it is;O c.None of the other answers;O d. The economy will have to run a larger cyclical surplusafter the crisis;е.The cyclical deficit will have to decrease;

Parts of the federal budget surplus or deficit that are due to cyclical factors and not from…

Suppose that during a crisis, the actual primary deficit has continuously remained less than the cyclically adjusted primary deficit. Other things being equal, for debt to remain sustainable, which of the following is true? The economy will have to run a larger budget surplus; а. O b. If the cyclical deficit is very large, the actual deficit will have to be even lower than it is; c. None of the other answers; d. The economy will have to run a larger cyclical surplus after the crisis; Ое. The cyclical deficit will have to decrease;

Suppose that during a crisis, the actual primary deficit has continuously remained less than the cyclically adjusted primary deficit. Other things being equal, for debt to remain sustainable, which of the following is true? The economy will have to run a larger budget surplus; а. O b. If the cyclical deficit is very large, the actual deficit will have to be even lower than it is; c. None of the other answers; d. The economy will have to run a larger cyclical surplus after the crisis; Ое. The cyclical deficit will have to decrease;

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter18: Six Debates Over Macroeconomic Policy

Section: Chapter Questions

Problem 6PA

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