Macro
If the reserve ratio is 20%, the simple money multiplier has a value of____
5
Assume a bank has $4 million in deposits at the Fed and $1 million in vault cash. How many $ does the bank has in reserves?
5 million
suppose a bank has $10,000 of deposits and the required reserve ratio is 5%. The bank must hole $______ of required reserves
500
A small country has a population of 10,000. 8,000 are the civilian non-institutional population. 2,000 are not in labor force. 1000 are unemployed. the employment rate is...
5000/8000
If $3,600 billion worth of transactions occurs in a year (GDP) and the average money supply during the year is $400 billion (M), then a dollar must have been used an average of _____ times during the year to purchase goods and services.
9
suppose the structural unemployment rate is 5% and the frictional unemployment rate is 4%. what is the natural unemployment rate?
9%
If cash leakage is more than zero, then: Change in checkable deposits____ (1/r) x (Change in R), where r is the required reserve ratio and R is the bank reserves.
<
Which of the following cases is considered an unemployed person? (a) Ann is 14 years old, but has no job. (b) Ann is in prison, and has no job. (c) Ann doesn't have a job and hasn't made any effort to find a job for the last two years. (d) Ann lost her job two weeks ago.
A
Who is not in the labor force? (a) Bob1 inherits a legacy and decides not to work to make a living (b) Bob2 works part-time (c) Bob3 is waiting for new employment which he starts in 2 months (d) Bob4 is seeking out opportunities for job interviews
A
assume a bank has $5,000 of deposits and total reserves of $250. If the reserve ratio is 5%, the bank can create ____ of new money
$0
Land
All natural resources
Suppose a woodcutter sells wood at $10 to a carpenter. The value added by the woodcutter is __________. The carpenter uses the wood to make a sofa and sells it to a final consumer at $100. Value added by the carpenter is __________. The VAT of 10% leads to a revenue of _________ for the government?
$10, $90, $10
assume a bank has $5,000 of deposits and total reserves of $250. If the reserve ratio is 5%. suppose the bank gets a loan of $1000 from the Federal Reserve. How many new dollars can the bank create.
$1000
a lamps manufacturer pays $250 and sells the lamps made from those parts for $400. The manufacturers added value is?
$150
assume a bank has $5,000 of deposits and total reserves of $250. If the reserve ratio is 5%. suppose the bank gets a loan of $1000 from the Federal Reserve. how many dollars of new money can the banking system as a whole create?
$20,000
During the summer you decide to attend a summer camp, which prevents you from working at your dad's restaurant in which you normally earn $2000 for the summer. Your camp fee costs $30 and supplies cost another $30. In terms of dollars, the opportunity cost of attending summer camp is
$2060
Suppose that the money supply in an economy is $10, and that velocity is 5. If the price level is $2, what is Real GDP?
$25
what best describes the predetermined-money-growth-rate rule?
%∆M = %∆Q - %∆V
rate of inflation=
((year 2- year 1)/ year 2) x 100
how do you find the multiplier
(1/(1-MPC)) or (1/MPS)
CPI=
(current price/ base year) price x 100
9. In (i)________ , the lenders and borrowers come together in a market setting. In (ii)________, lenders and borrowers go through financial intermediary, which takes in fund
(i) direct finance, (ii) indirect finance
The law of supply states that as the price of a good rises, (i)_______ of the good rises, (ii)_______ .
(i) the quantity supplied, (ii) ceteris paribus
real income=
(nominal income/ CPI) x 100
Choose the correct signs: Personal income = National income ___ Undistributed corporate profits ___ Social insurance taxes ___ Corporate profits taxes ___ Transfer payments
-,-,-,+
Suppose consumption rises from $100 to $200 as disposable income rises from $800 to $1400. What is the marginal propensity to consume?
.17
If the required reserve ratio is 4% and Bank A has $5 million in its checkable deposit, which of the followings is its possible level of reserves?
.22 million
the price of a good rises for $5 to $10. the quantity demanded goes form 6 to x. For what value of x is the law of demand not violated -7 -8 -9 -0
0
how do you find the money multiplier
1/ reserve ratio
. Suppose the money price of a Playstation 4 is $300 and the money price of a textbook is $100. Then the relative price of a book is ___. Suppose the government imposes a 5% tax on the Playstation 4 and a 5% tax on books. Then the after-tax relative price of a book in terms of a Playstation 4 ___.
1/3; stays the same
The Nominal GDP in Year 1 is $5000 and the GDP deflator in Year1 is 125. The Nominal GDP in Year 2 is $6600 and GDP deflator in Year 2 is 150. What's the real GDP growth rate from Year 1 to Year 2?
10%
Suppose your nominal income increases from $20,000 in year 1 to $25,000 in year 2. If the CPI was 100 in year 1, how much should the CPI be so that your real income remains the same?
125
Suppose in an economy the inflation rate is 8% and the GDP gap is 3%. What is the Fed funds rate target according to the Taylor rule?
14.5%
if a bank has $500 of required reserves and $650 of total reserves, its excess reserves are equal to $____
150
Three episodes of The Big Bang Theory are taped in the studio. Suppose the supply of seats in the TV studio is 200 seats for each of three shows. The demand curves for the three shows are Q=500-20P; Q=400-20P and Q= 500-30P. Due to the popularity of the show, tickets always sell out. What are the market equilibrium prices for the three shows?
15;10;10
. Suppose your salary is $20,000 in year 1 and increases to $25,000 in year 2. Suppose the CPI was 100 in year 1 and 150 in year two. What is your year two salary in year one prices?
16,666
Consider an economy where consumption equals $500, investment equals $900, government purchases equal $1000, imports equal $900 and exports equal $100. Calculate its GDP.
1600
At one point along a PPF, 50 tons of coffee and 100 tons of bananas are produced. At another point along the same PPF, 30 tons of coffee and 140 tons of bananas are produced. The opportunity cost of a ton of coffee between these points is
2 tons of bananas per ton of coffee
if the money supply is $2 trillion and total spending is $5 trillion, the velocity has a value of___
2.5 trillion
suppose the government has a total deficit of 800 billion and a cyclical deficit of 600 billion. what is the structural deficit
200 billion
Suppose your nominal income goes from $20,000 in year 1 to $X in year 2. Suppose the CPI was 100 in year 1 and 150 in year two. How much should X be so that your real income remains the same?
30,000
Suppose you get a loan of $1000 at nominal interest rate 7%. The expected inflation rate is 3%. What is your real cost of borrowing the loan?
4%
if the nominal interest rate is 6% and the expected rate of inflation is 2%, the real interest rate is___%
4%
calculate the multiplier when MPC = .78
4.55
. Suppose that tennis racket prices increase. Which is the most plausible? a) The demand curve for tennis rackets increases b) The demand curve for tennis balls shifts leftward. c) The price of squash balls falls d) The demand for squash rackets goes down.
B
. Which statement is true? a) Sellers always prefer higher prices to lower prices b) Sellers prefer higher prices to lower prices given all other factors equal c) Sellers prefer higher prices to lower prices when they are faced with a price floor d) Sellers might prefer lower prices to higher prices at market equilibrium
B
At a given price level, suppose that investment (I), government purchases (G), and net exports (NX) increased while the AD curve shifted left. Which of the following statements can be true? (a) Higher future prices were expected (b) Consumption decreased a lot (c) Consumption increased a lot (d) There were increases in wealth
B
Which of the following is NOT a reason for why the AD curve slopes downward? (a) Real balance effect (b) Sticky wages (c) International trade effect (d) Interest rate effect
B
Which of the followings is true for Market Disequilibrium: a) Market price is always high enough to allow firms to earn a positive profit. b) Market price is not at the right place to make the market clear c) Market price is always low enough for consumers to buy all that they want. d) Market price is at a level where there is neither a shortage nor a surplus.
B
Which of the followings is true about the Government's Role according to the Simple Keynesian Model? a) Government should do nothing b) Government should do something to change the net export c) Government could play an important role in shifting the AD curve d) None of the above are true
C
GDP=
C+I+G+(X-M)
Suppose that the money supply is $15 and the velocity is 2. If government spending increases, what must happen to consumption, assuming the price level remains constant?
Consumption must decrease if the money supply and velocity remain constant
Why do economists make use of the ceteris paribus assumption?
Economists wish to specify what they believe to be real-world relationships between two variable
T/F Statement (i): A unit of a commodity can be both good and bad for an individual at the same time. Statement (ii): A unit of a commodity can be both good and bad for two different individuals at the same time.
F, T
Consider the following statemetns: (i) economists equate full employment with a zero rate of unemployment; (ii) full employment exists when an economy is operating at its natural rate of unemployment
F;T
money velocity=
GDP/ money supply
The reason the field of economics exists is because
Individuals and societies have collective wants that are greater than the limited resources to satisfy those wants.
If the price of materials used to make PCs rises sharply, what happens to the equilibrium price and the quantity sold of PCs?
P rises; Q falls
Real GDP=
P(base year) x Q(new year)
Nominal GDP=
P(new year x Q(new year)
Labor
Physical and mental work
Capital
Produced goods
Suppose QN = Natural Real GDP whereas Q1 and Q2 are any two other arbitrary amounts of Real GDP. An economy is said to be in an inflationary gap when
Q1 > QN
Suppose an economy is in short-run equilibrium at a price level of 100 and a Real GDP level of $200 million. As time passes, the price level falls to 70 and Real GDP rises to $220 million. Which of the following might be a cause?
SRAS rises due to a decrease in input prices and AD remains constant
T/F All else equal, as the price of a football ticket rises, the quantity demanded of football tickets falls
T
T/F a minimum wage law is an example of institutional contsraint
T
T/F- unemployment rate is smaller than one minus employment rate
T
Fill in the blanks. ___ will give the firms a signal of under-production and firms will ___ production after receiving this signal.
TE < TP; increase
what is the effect of an increase in taxes according to Keynesian theory
The AD curve will shift to the left
John has been working out at the gym. John usually works out for three hours and then returns to his apartment. Which of the following best describes John's decision to stop working out after three hours?
The marginal benefit of the third hour of working out equals the marginal cost of the third hour of working out
Suppose that last month the money price of a Honda Civic was $10,000 and the money price of a TI graphing calculator was $10. Today the money prices become $8800 and $9. Then
The price of the TI calculator in terms of the Honda Civic is higher
The Civilian Non-Institutional Population of Pageland is 48 million. Of this total, 4 million are unemployed and 36 million currently hold jobs. What are the rates of unemployment and labor force participation of Pageland?
The rate of unemployment is 10% and the labor force participation rate is 75%
marginal propensity to come (MPC)
The ratio of the change in consumption to the change in disposable income: MPC=ΔC/ΔYd.
marginal propensity to save (MPS)
The ratio of the change in saving to the change in disposable income: MPS=ΔS/ΔYd
Entrepreneurship
The talent for organizing the resources of land labor and capital to produce goods
If automobile manufacturers are producing more cars than people want to buy
There is an excess supply and price can be expected to decrease
If you walk into CVS and observe a price increase in vitamin water, what information can you infer?
There might be more people beginning to drink vitamin water
Mexico and USA decide to trade with each other. Mexico can produce either 50 apples or 80 tomatoes whereas USA can produce either 80 apples or 80 tomatoes. What is the best outcome?
USA will produce 80 apples and 0 tomatoes whereas Mexico will produce 0 apples and 80 tomatoes.
moral hazard
a condition that exists when one party toa transaction changes his or her behavior in a way that is hidden from, and costly to the other party
adverse selection
a phenomenon that occurs when parties on one side of the market who have information not known to the others self-select in a way that adversely affects parties on the other side of the market
Which of the following is not an effect of scarcity? a). Abundance b). Choices c). Need for a Rationing Device d). Competition
abundance
cyclical unemployment=
actual- natural
the effectiveness lag
after being implemented, a policy measure takes time to affect the ecomomy
the legislative lag
after policy makers decide that some type of fiscal policy measure is required, Congress or the president has to propose the measure, build political support for it, and get it passed
increase in wealth=
aggregate demand increases
. Both adverse selection and moral hazard are the result of ___________, a situation in which one party to a transaction has information that the other party does not have. For example, a taxi driver has more information about the roads than does a tourist. He may take a longer route in order to get a higher fare.
asymmetric information
economists study
both benefits and cost of a situation
if a decrease in AD that is bigger than the increase in SRAS then
both price levels and production falls
To increase the money supply, the Fed should __ government securities from/to a bank.
buy
fiscal policy
changes in government expenditures and or taxes aimed at achieving economic goals, such as low unemployment, stable prices, and economic growth
frictional unemployment
changing jobs
During the late eighteenth century, farmers in the Pennsylvania backcountry used whiskey for money. They bought and sold items by the jug. This is an example of _______.
commodity money
for discretionary fiscal policy to be effective
crowding out must be zero and policy lags must be insignificant
According to Keynesian monetary transmission mechanism, an increase in the money supply will___
decrease the interest rate and increase planned investment
Fill the blanks: A Fed open market sale __ reserves in the banking system and thus __ the supply of loanable funds. In consequence the interest rate __.
decreases; decreases; increases
suppose the government has expenditures of 3 trillion and tax revenues of of 2.5 trillion. we can say there is a budget______
deficit of $.5 trillion
The Fed gives a loan to Chase at an interest rate of 10%. This interest rate is known as _________. Chase gives a loan to Bank of America at an interest rate of 15%. This interest rate is known as __________.
discount rate; federal finds rate
a bad is something that gives a person
disutility
Suppose you buy raw iron to make iron chairs and then sell them to consumers in a shop you own. If you consider your expenditure on raw iron and the consumer's expenditure on the chair as part of the GDP you face which problem?
double counting
what problem arises if we counted expenditures on both final and intermediate goods?
double counting
not counting discouraged workers as unemployed workers biases the unemployment rate estimates
downwards
when does cyclical unemployment exist
during a recession only
structural unemplyment
economic structure change
what is the most accurate definition of economics
economics is the science of scarcity
according to the monetarist model, a move from point 1 to point 2 is the result of
either and increase int he money supple or an increase in velocity
employment rate=
employed/ non institutional population
who provides check clearing services
federal reserve
an indirect method of financing relies on___ to move funds from savers to borrowers
financial intermediaries
natural unemployment rate=
frictional + structural
Suppose the absolute price of a football ticket is $50 and the absolute price of a baseball ticket is $70. The relative price of a baseball ticket is (i) _____. Now suppose the government imposes a tax on a football tickets but not on baseball tickets. As a result of the tax, the price the consumer pays for a football ticket increases to $60. That is, the after-tax relative price of a baseball ticket (in terms of football tickets) (ii) ______..
i) 70/50 ii) decreases
T/F: (i) An economy can never produce at a point beyond its institutional PPF; (ii) An economy in an inflationary gap is producing at a point beyond its physical PPF.
i) F ii) F
T/F Statement (i) The CPI market basket contains all goods and services produced in an economy. (ii) The GDP Implicit Price Deflator uses all goods and services produced in an economy.
i) F ii) T
T/F: (i) Classical economists believe that interest rate flexibility supports Say's Law in a money economy; (ii) A worker who spends less than his full income automatically disproves Say's Law.
i) T ii) F
Market price of gold > Official price of gold → Public (i)_______ gold from the monetary authority → Public exchanges money for gold → Money supply (ii)_______ → Price level declines
i) buys ii) declines
(i)_______, in the short run, an increase in aggregate demand (ii)______ the equilibrium price level and Real GDP. A (iii)______ in short-run aggregate supply increases the price level and decreases Real GDP.
i) ceteris paribus ii) lowers iii) decrease
Economists who believe that crowding out is always (i)________ and that lags are (ii)___________ conclude that fiscal policy is ineffective in that respect.
i) complete ii) significant
(i)________ is said to exist when there is a decrease in one or more components of private spending that completely offsets the increase in government spending. On the other hand, if a decrease in private spending only partially offsets the increase in government spending, we say (ii)___________ exists.
i) complete crowding out ii) incomplete crowding out
As a person's income (i)_______, that individual's demand for a particular good may (ii)______ if the good is a(n) (iii)_________ good.
i) decreases ii) rise iii) inferior
Consider the following two statements: (i) speculators are able to help reduce price fluctuations by buying at a high price and selling at a low price; (ii) speculators always make others worse off
i) false ii) false
State the category/categories of resource(s) to which the following belong: (i) Human employee (ii) Working Robotic Machine.
i) labor ii) capital
Consider the following two statements. (i) The unemployment rate is 5%; (ii) The unemployment rate is far too high.
i) positive statement ii) normative statement
An Economy is (i) ________ if it is producing the maximum output with the resources and technology that it has. The economy is (ii) ________ if it is producing less than the maximum output with the resources and technology that it has.
i) productive efficient ii)productive inefficient
Consider what a fall in the interest rate will do in the short run. If interest rate falls, both consumption and investment will (i)_______. The AD curve will shift (ii)________, so (ii)___________ will rise a. (i) fall (ii) leftward (iii) only price b. (i) rise (ii) leftward (iii) both price level and Real GDP c. (i) rise (ii) rightward (iii) both price level and Real GDP d. (i) rise (ii) rightward (iii) only Real GDP
i) rise ii) rightward iii) both price level and real GPD
Let's assume the economy is self-regulating and the economy is initially in long-run equilibrium. Let's consider what happens if aggregate demand increases in the long run. Then the price level (i)_______ and Real GDP (ii)_______.
i) rises ii) does not change
Consider the following statements and pick the appropriate option. (i) Keynesians believe that the economy is inherently unstable. (ii) Keynes believed that the time frame required for wages and prices to adjust is too long to call the economy self-regulating.
i)T ii)T
i) raw wood ii) wooden hammer
i)land ii)capital
suppose that an economy is initially in long-run equilibrium. If there is a decrease in aggregate demand, then
in the short run. both the price level and real GDP fall; in the long run, the price level falls but real GDP does not change
Fill the blanks: An increase in the money supply causes a(n) __ in Real GDP. This change will result in __ in the supply of loanable funds and __ in the demand of loanable funds.
increase; increase; increase
the reason economics exists
individuals and societies have limited resources but unlimited wants
One way to explain the influence of changes in the money supply on aggregate demand is: a change in the money supply will affect ___ and this effect will further affect ___ so that aggregate demand might be affected finally.
interest rates; consumption and investment
In the Keynesian Transmission Mechanism, when money supply increases, which component causes the AD to increase?
investment
Moving from one point on the production possibilities frontier to another ________.
involves a trade-off and incurs an opportunity costs
a price ceiling is binding when
its below the equilibrium price
Jim quit his job and become unemployed. he is a...
job leaver
labor force participation=
labor force/ civilian non institutional population
decrease in demand shifts to the
left
decrease in supple shifts to the
left
in a inflationary gap the LRAS line is ____ of the equillibrium point
left
how can we obtain long run growth in real GDP
long run aggregate supple shifts rightward
increase in labor productivity=
long run/ short run aggregate supply curve increases
an effective price ceiling or floor leads to
lower than equilibrium quantity traded between the buyer and seller
suppose an oil firm gets information that the price of oil in the next year will increase. what will they do?
lower the supply of oil at all prices this year
money is readily accepted in payment for all debts. this refers to a moneys role as a
medium exchange
The fact that money is generally acceptable in exchange for goods and services implies it is a _____.
medium of exchange
according to Keynes which elements can prevent the price from falling
monopolistic elements
the problem of asymmetric information includes___
moral hazard and adverse selection
Fill in the blanks: Rachael, who just graduated from OSU and has taken several part time jobs, says she wants to work and is available for work. She has recently looked for work but has not found a job. The BLS would call Rachael a __________________. If she is no longer looking for work right now because, as she argues, there are no jobs for her, she would be considered a ____________.
new entrant; discouraged worker
is the government always the solution to an economic problem?
no
the transmission lag
once enacted, a fiscal policy measure takes time to go into effect
In the long, monetarists believe that an increase in the money supply will
only raise the price level
Suppose San Diego has better weather than Fargo. Suppose the two cities have the same fixed supply of housing. Initially, house prices are higher in San Diego than in Fargo. A new federal policy requires each city to have the same house price level (for houses in the same condition) what will happen?
other living costs will respond to this policy and San Diegans will still pay for good weather
frictional unemployment occurs when
people have imperfect information about available jobs
the law of increasing opportunity costs holds because
people have varying abilities
Suppose the economy begins at point 1. A negative supply shock will take the economy to____ in the short run but to ___in the long run
point 3, point 1
wait-and-see lag
policy makers are not aware of changes in the economy as soon as they happen
the GDP deflator is a measure of
price level
if an increase in SPAS is bigger than the increase in AD then
price level rises and production falls
if an increase in SRAS that is smaller than the increase in AD then
price levels and production rises
if the price of material used to make sneakers rises sharply, what happens to the equilibrium price and the quantity sold for sneakers?
price rises; quantity falls
A firm and its workers agree to lock in wages for the next 3 years. Suppose the price level goes up during this time period, which of the following happens?
quantity demanded of labor increases
inflationary gap
real GDP is greater than the natural GDP and unemployment rate is is less than the natural unemployment rate
recessionary gap
real GDP is less than natural GDP and actual unemployment rate is above natural unemployment rate
under what conditions would the Keynesian call for an increase in government spending
recessionary gap
saving increases which...
reduces interest rates and raises investment. The increase in investment offsets the decrease in consumption
in a recessionary gap the LRAS line is_____ of the equilibrium point
right
increase in demand shifts to the
right
increase in supply shifts to the
right
Fill in the blanks: If the economy is in an inflationary gap, wage rates ____ (along with other resource prices) and the SRAS curve shifts to the ____. At the same time, the price level rises and the economy ____ the AD curve. The economy moves in the direction of long-run equilibrium, ultimately achieving the _______.
rise, left, moves up, natural real GDP level
in progressive income tax structure, as the taxable income ______ the tax rate_____
rises;rises
suppose the federal reserve decided to reduce money supply. it could____
sell bonds
increase in wage rates=
short run aggregate supply curve decreases
What will happen to the supply side of an economy if the government increases the marginal tax rate permanently?
short run aggregate supply decreases; long run aggregate supply decreases
Suppose that foreign real national income decreases and labor productivity rises at the same time. Ceteris paribus, what will happen?
short-run equilibrium price level falls. real GDP falls or rises
by using a credit card, you are initially
spending someone else's money
if there is a technological change that displaces workers the change will increase
structural unemployment
If Jim used to work at a typewriter factory, and personal computers result in the factory being shut down, what kind of unemployment best describes Jim's circumstances
structural unemplyment
the price of tomatoes increases and in response people begin to buy more lettuce. you can infer that lettuce and tomatoes are
substitutes
When the interest rate is above the rate required for the money market to be in equilibrium, there is a/an ____ of money.
surplus
when a recessionary gap exists, then which of the following is true about the state of the labor market
surplus exists
according to the Laffer Curve, a cut in the tax rate can increase revenue if
the current tax rate is above the optimal tax rate
the time is takes to recognize a problem is called
the data lag
why does an increase in price level cause an increase in interest rate
the demand for credit increases
Which type of lag is explained below? "After being implemented, a policy measure takes time to affect the economy. If government spending is increased on Monday, the aggregate demand curve does not shift rightward on Tuesday."
the effectiveness lag
Says Law
there can be no general overproduction
Assume complete crowding out exists. What is the effect of a discretionary increase in government purchases?
there is no effect
what is a necessary condition for a barter exchange to occur
there must be a double coincidence of wants
why do people interested in solely making a profit voluntarily enter into exchanges
to give up something they value less for something they value more
Suppose in an economy total expenditure = $5000. Household consumption is $4000, Investment is $500, Government Purchases is $250, and Net Exports is $250. According to classical economists, if households increase savings by $200, what will happen to the total expenditure?
total expenditure will stay the same
labor force =
unemployed + employed
actual unemployment rate=
unemployed/ labor force
what will happen to a self regulation economy if its in a recessionary gap
unemployment is higher than the natural rate but will decrease due to a decrease in the wage
a good is anything that gives a person
utility
how to find what the value of money would be in a different year
value x dollars= value y dollars (CPIx/CPIy)
the quantity theory of money says that the price level will change in proportion to changes in the money supply in the long run. This is because
velocity and natural GDP are assumed to be constant
Suppose that unemployment is greater than the natural rate of unemployment. According to Keynes, what could be a cause for the economy's inability to come out of the recessionary gap?
wage rates display rigidity in moving downwards
Why is the SRAS curve is upward- sloping while the LRAS curve is vertical
wages are sticky and workers have mispreceptions only in the short run
A key assumption of the self-regulation economy is that
wages rates and resources prices are flexible
when does your real income increase
when the percentage change in the nominal is 0%, and the inflation rate is -2%
Consider three combinations of goods taken from a bowed-outward PPF: (i) 14 shirts and 0 books ; (ii) 8 shirts and 1 book and (iii) x shirts and 2 books. Which of the following values of x would justify the PPF being a bowed-outward PPF?
x=1
If the economy functioned at full employment, would a federal deficit still exist? If yes, then what type?
yes, structural deficit
