The table below shows the relationship between the deficit and real GDP. Draw a diagram depicting this relationship. Assume potential GDP is $6,900 billion. $$\begin{array} { | c | c | }
\hline \begin{array} { c }
\text { Real GDP (billions of } \
\text { dollars) }
\end{array} & \begin{array} { c }
\text { Deficit (billions of } \
\text { dollars) }
\end{array} \
\hline 6,750 & 280 \
\hline 6,825 & 260 \
\hline 6,900 & 240 \
\hline 6,975 & 220 \
\hline 7,050 & 200 \
\hline
\end{array}$$ (A) What is the structural deficit?
(B) If real GDP is \$7,050 billian, what is the cyclical deficit?
(C) If real GDP is \$6,750 billian, what is the cyclical deficit?
(D) Show what will happen to the relationship between the deficit and real GDP if Medicare and federal prison incarceration costs increase writhout any carresponding increase in tares or reduction in ather proprams.

Question

The table below shows the relationship between the deficit and real GDP. Draw a diagram depicting this relationship. Assume potential GDP is $6,900 billion. $$\begin{array} { | c | c | } 
\hline \begin{array} { c } 
\text { Real GDP (billions of } \
\text { dollars) }
\end{array} & \begin{array} { c } 
\text { Deficit (billions of } \
\text { dollars) }
\end{array} \
\hline 6,750 & 280 \
\hline 6,825 & 260 \
\hline 6,900 & 240 \
\hline 6,975 & 220 \
\hline 7,050 & 200 \
\hline
\end{array}$$ (A) What is the structural deficit?
(B) If real GDP is \$7,050 billian, what is the cyclical deficit?
(C) If real GDP is \$6,750 billian, what is the cyclical deficit?
(D) Show what will happen to the relationship between the deficit and real GDP if Medicare and federal prison incarceration costs increase writhout any carresponding increase in tares or reduction in ather proprams.

Quizplus · Accepted Answer

The Answer of The table below shows the relationship between the deficit and real GDP. Draw a diagram depicting this relationship. Assume potential GDP is $6,900 billion. $$\begin{array} { | c | c | } 
\hline \begin{array} { c } 
\text { Real GDP (billions of } \
\text { dollars) }
\end{array} & \begin{array} { c } 
\text { Deficit (billions of } \
\text { dollars) }
\end{array} \
\hline 6,750 & 280 \
\hline 6,825 & 260 \
\hline 6,900 & 240 \
\hline 6,975 & 220 \
\hline 7,050 & 200 \
\hline
\end{array}$$ (A) What is the structural deficit?
(B) If real GDP is \$7,050 billian, what is the cyclical deficit?
(C) If real GDP is \$6,750 billian, what is the cyclical deficit?
(D) Show what will happen to the relationship between the deficit and real GDP if Medicare and federal prison incarceration costs increase writhout any carresponding increase in tares or reduction in ather proprams.

The Table Below Shows the Relationship Between the Deficit and Real