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Refer to the Above Diagram Where T Is Tax Revenues

Question 231

Multiple Choice

Refer to the above diagram where T is tax revenues and G is government expenditures.All figures are in billions of dollars.If the full-employment GDP and actual GDP are each $400 billion, this economy will realize a: A) full-employment or structural deficit of $20 billion. B) cyclical deficit of $20 billion. C) cyclical surplus of $20 billion. D) full-employment deficit of zero. Refer to the above diagram where T is tax revenues and G is government expenditures.All figures are in billions of dollars.If the full-employment GDP and actual GDP are each $400 billion, this economy will realize a:


A) full-employment or structural deficit of $20 billion.
B) cyclical deficit of $20 billion.
C) cyclical surplus of $20 billion.
D) full-employment deficit of zero.

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