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 full-employment or cyclically adjusted deficit is:
A)$40 billion.
B)zero.
C)$60 billion.
D)$20 billion.

Question

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 full-employment or cyclically adjusted deficit is:
A)$40 billion. 
B)zero. 
C)$60 billion. 
D)$20 billion.

Quizplus · Accepted Answer

The Answer of  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 full-employment or cyclically adjusted deficit is:
A)$40 billion. 
B)zero. 
C)$60 billion. 
D)$20 billion.

Refer to the Above Diagram Where T Is Tax Revenues