Suppose, for a hypothetical economy, potential GDP equals $9,200 billion. If real GDP equals $9,400 billion, then according to the table below, the cyclical surplus equals 
A) $320 billion.
B) $40 billion.
C) -$40 billion.
D) $20 billion.
E) $360 billion.
Correct Answer:
Verified
Q112: Exhibit 26-1 Q122: For real and potential GDP to be Q125: Suppose as a professional economist you are Q127: Suppose the economy is in a boom Q129: Suppose the government surplus is currently .5 Q130: The table below shows the relationship between Q133: Suppose the budget deficit for a hypothetical Q134: The size of the budget surplus depends Q135: Suppose that the economy is in a Q136: Real GDP and the budget deficit are![]()
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