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Homework answers / question archive / When the structural deficit is $100 billion and the cyclical deficit is $50 billion, the deficit that remains at full employment is $150 billion
When the structural deficit is $100 billion and the cyclical deficit is $50 billion, the deficit that remains at full employment is $150 billion. 8. Automatic stabilizers work during both economic recessions and economic expan- sions. 9. An increase in cyclical unemployment decreases the natural rate of unemployment. 10. When there is an increase in unanticipated inflation, the income is more likely dis- tributed from borrowers to lenders.
Q7) false
structural deficit is value of deficit , at full employement level, so it is 100
Q8) true
automatic stabilizers tend to smooth out the deviations caused in the economy, so it works both during expansion & contraction
Q9) false
Natural rate of unemployment remains unaffected by cyclical unemployment rate
Q10) false
with unanticipated inflation , wealth transfers from lenders to borrowers, bcoz lender receive back money with lower value
