Suppose the government surplus is currently .5 percent of real GDP and the structural surplus is 1.5 percent.
(A) Is real GDP currently above or belaw potential GDP? Draw a thangin shaning this situetion.
(B) In your thiaran, show the situation in which real GDP increases. What happens to the cyclical suplus?

Question

Suppose the government surplus is currently .5 percent of real GDP and the structural surplus is 1.5 percent.
 (A) Is real GDP currently above or belaw potential GDP? Draw a thangin shaning this situetion.
(B) In your thiaran, show the situation in which real GDP increases. What happens to the cyclical suplus?

Quizplus · Accepted Answer

The Answer of Suppose the government surplus is currently .5 percent of real GDP and the structural surplus is 1.5 percent.
 (A) Is real GDP currently above or belaw potential GDP? Draw a thangin shaning this situetion.
(B) In your thiaran, show the situation in which real GDP increases. What happens to the cyclical suplus?

Suppose the Government Surplus Is Currently