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Refer to the Diagram, Where T Is Tax Revenues and G

Question 39

Multiple Choice

Refer to the 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 Cyclically adjusted budget deficit is A) $40 billion. B) zero. C) $60 billion. D) $20 billion. Refer to the 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
Cyclically adjusted budget deficit is


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

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