Macroeconomics 9th Edition by David Colander

Exercise 16

Say the marginal tax rate is 30 percent and that government expenditures do not change with output.ay also that the economy is at potential output and that the deficit is $200 billion.
a.hat is the size of the passive deficit
b.hat is the size of the structural deficit
c.ow would your answers to a and b change if the deficit were still $200 billion but the output were $200 billion below potential
d.ow would your answers to a and b change if the deficit were still $200 billion but output were $100 billion above potential
e.hich is likely of more concern to policy makers: a passive or a structural deficit