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 and actual GDP are each $400 billion, this economy will realize a:
A)full-employment or structural deficit of $20 billion.
B)cyclical deficit of $20 billion.
C)cyclical surplus of $20 billion.
D)full-employment deficit of zero.

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 and actual GDP are each $400 billion, this economy will realize a:
A)full-employment or structural deficit of $20 billion. 
B)cyclical deficit of $20 billion. 
C)cyclical surplus of $20 billion. 
D)full-employment deficit of zero.

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 and actual GDP are each $400 billion, this economy will realize a:
A)full-employment or structural deficit of $20 billion. 
B)cyclical deficit of $20 billion. 
C)cyclical surplus of $20 billion. 
D)full-employment deficit of zero.

Refer to the Above Diagram Where T Is Tax Revenues