Question #44
If the structural budget balance is in surplus but the overall budget is in deficit
- then we know that the government policy stance is contractionary.
- then we know that the government is relaxing its policy stance to stimulate economic activity.
- then we know that the automatic stabilisers are not working properly.
Answer #440
Answer: then we know that the government policy stance is contractionary.
Explanation
Please read Structural deficits - the great con job! or post a comment for further discussion