Suppose that the economy has a structural deficit of $200 billion and is operating above potential output. From this we can infer that the budget as a whole:
A) is in deficit.
B) is balanced.
C) is in surplus.
D) could be in deficit, in surplus, or balanced.
Correct Answer:
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Q48: If an economy is $100 billion below
Q49: The government decides to increase its expenditures
Q50: The real deficit depends on the:
A)level of
Q51: Suppose that the economy has a structural
Q52: The cyclical deficit is $400 billion, potential
Q54: During World War II, the economic recession
Q55: Suppose that the economy has a structural
Q56: Suppose that the economy has a structural
Q57: The nominal deficit depends primarily on:
A)government's expenditures
Q58: Suppose potential income is $60 billion, actual
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