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.

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:
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.

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:
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.

Refer to the Above Diagram Where T Is Tax Revenues