When real GDP equals potential GDP of $12 trillion, the budget deficit is $1 trillion.Real GDP actually equals $14 trillion and the budget surplus is $3 trillion.The economy has a structural _______ and a cyclical _______ .
A) deficit of $1 trillion; surplus of $2 trillion
B) deficit of $4 trillion; surplus of $1 trillion
C) surplus of $3 trillion; surplus of $2 trillion
D) deficit of $1 trillion; surplus of $4 trillion
E) surplus of $4 trillion; deficit of $1 trillion
Correct Answer:
Verified
Q86: Expansionary fiscal policy
A)increases long- run aggregate supply.
B)decreases
Q87: If real GDP is less than potential
Q88: The use of fiscal policy is limited
Q89: The economy is in a recession, the
Q90: The economy is in a recession and
Q92: The economy is in a recession and
Q93: Discretionary fiscal policy is risky because it
Q94: In 2016, Canada had
A)a structural surplus and
Q95: Choose the correct statement.
A)Tax cuts increase aggregate
Q96: If the economy has a structural deficit
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