The structural deficit can be defined as
A. the deficit that is structurally obstructing economic recovery to reach level of high employment.
B. a hypothetical construct that estimates the deficit, given current tax rates and expenditure policies, if the economy were operating at some fixed high-employment level.
C. the deficit necessary to restructure the economy and reach a desired high-employment level.
D. the deficit that would prevail if fiscal policy were structured differently in order to reach a desired high-employment level.
Answer: B
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