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The Diagram Below Shows Two Budget Deficit Functions for a Hypothetical

Question 22

Multiple Choice

The diagram below shows two budget deficit functions for a hypothetical economy. The diagram below shows two budget deficit functions for a hypothetical economy. FIGURE 31-2 Refer to Figure 31-2.Initially,suppose the economy is at point A on budget deficit function .Real GDP (Y) is $100 million.If the level of potential output (Y*) were $400 million,the structural budget deficit would be A) $14 million. B) $4 million. C) negative. D) -$10 million. E) $0. FIGURE 31-2 Refer to Figure 31-2.Initially,suppose the economy is at point A on budget deficit function The diagram below shows two budget deficit functions for a hypothetical economy. FIGURE 31-2 Refer to Figure 31-2.Initially,suppose the economy is at point A on budget deficit function .Real GDP (Y) is $100 million.If the level of potential output (Y*) were $400 million,the structural budget deficit would be A) $14 million. B) $4 million. C) negative. D) -$10 million. E) $0. .Real GDP (Y) is $100 million.If the level of potential output (Y*) were $400 million,the structural budget deficit would be


A) $14 million.
B) $4 million.
C) negative.
D) -$10 million.
E) $0.

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