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Refer to the Above Diagram Where T Is Tax Revenues

Question 200

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 is $400 billion while the actual GDP is $200 billion, the full-employment or cyclically adjusted deficit is: A) $40 billion. B) zero. C) $60 billion. D) $20 billion. 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 is $400 billion while the actual GDP is $200 billion, the full-employment or cyclically adjusted deficit is:


A) $40 billion.
B) zero.
C) $60 billion.
D) $20 billion.

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