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

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

A) actual budget deficit exceeds the cyclically adjusted budget deficit.
B) actual budget deficit is less than the cyclically adjusted budget deficit.
C) cyclically adjusted deficit exceeds the cyclical deficit.
D) cyclical deficit exceeds the cyclically adjusted deficit.