The cyclical deficit:
A) is not affected by changes in actual income or potential income.
B) rises as the economy expands and falls as the economy contracts.
C) is the deficit that exists if the economy is at potential income.
D) rises as the economy moves below potential output.
Correct Answer:
Verified
Q31: If actual income is $300 billion, potential
Q32: If taxes and government expenditures were constant
Q33: When the economy is operating close to
Q34: A policy of fiscal austerity could have
Q35: The structural deficit:
A)rises as the economy expands
Q37: Economists who focus on the need for
Q38: Compared to the predictions of the standard
Q39: If income falls below its potential and
Q40: Deficits and surpluses are best viewed as:
A)comprehensive
Q41: Policymakers generally are:
A)more concerned about structural deficits
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