Figure 16-1 -In Figure 16-1,there Are Four Levels of Income.G Is Government

Multiple Choice

Figure 16-1
-In Figure 16-1,there are four levels of income.G is government expenditures and TT is taxes less transfers.Y₃ is the full-employment level of income.At Y₃

A) there is an official deficit but a structural budget balance.
B) there is a structural deficit but an official budget surplus.
C) the official and structural deficit are in balance.
D) both the official and structural budgets show a deficit.