Figure 32-1 In Figure 32-1, There Are Four Levels of Income. G

Multiple Choice

Figure 32-1

In Figure 32-1, 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.