Suppose the budget deficit for a hypothetical economy fell from $107 billion in 2016 to $40 billion in 2017.
(A) If the econdmy was undergang an econamic exgansian far 2017 , exgleng how this might account far at least part of the decrease in the budet inenicit.
(B) Suppose real GDP equaled potential GDP in 2017 and wa belaw potential GDP in 2016. Sketch a diagram that shows the responsiveness of the deficit to real GDP ant alen showr the structural deficit

Question

Suppose the budget deficit for a hypothetical economy fell from $107 billion in 2016 to $40 billion in 2017.
 (A) If the econdmy was undergang an econamic exgansian far 2017 , exgleng how this might account far at least part of the decrease in the budet inenicit.
(B) Suppose real GDP equaled potential GDP in 2017 and wa belaw potential GDP in 2016. Sketch a diagram that shows the responsiveness of the deficit to real GDP ant alen showr the structural deficit

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The Answer of Suppose the budget deficit for a hypothetical economy fell from $107 billion in 2016 to $40 billion in 2017.
 (A) If the econdmy was undergang an econamic exgansian far 2017 , exgleng how this might account far at least part of the decrease in the budet inenicit.
(B) Suppose real GDP equaled potential GDP in 2017 and wa belaw potential GDP in 2016. Sketch a diagram that shows the responsiveness of the deficit to real GDP ant alen showr the structural deficit

Suppose the Budget Deficit for a Hypothetical Economy Fell from $107