-Refer to the Above Diagram Where T Is Tax Revenues

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:

A) actual budget deficit exceeds the full-employment deficit.
B) actual budget deficit is less than the full-employment deficit.
C) full-employment deficit exceeds the cyclical deficit.
D) cyclical deficit exceeds the full-employment deficit.