Cyclical and Structural Budget Deficits
- Levels: AS, A Level, IB
- Exam boards: AQA, Edexcel, OCR, IB, Eduqas, WJEC
This short revision video takes students through the difference between a cyclical budget deficit and a structural budget deficit.
Cyclical and structural fiscal balance
Cyclical fiscal balance
The size of the fiscal deficit is influenced by the state of the economy: in a boom, tax receipts are relatively high and spending on unemployment benefit is low.
Structural fiscal balance
The structural deficit is that part of the deficit which is not related to the state of the economy. This part of the fiscal deficit will not disappear when the economy recovers. A structural factor might be the long-term effects of an ageing population or perhaps the underlying level of personal and corporate tax avoidance.
A Level Economics Flashcards
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Temporary Teacher of Mathematics
Frensham Heights School, Nr Farnham, Surrey
- Economics
- Student videos
- Structural budget deficit
- Budget deficit
- Fiscal deficit
- Government debt
- Keynesian economics
- Balanced growth
- Economic Growth
- Sustainable growth
- National debt
Geoff Riley
Geoff Riley FRSA has been teaching Economics for thirty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD conferences in the UK and overseas.
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