The cyclical deficit is $400 billion, potential output is $9 trillion and the tax rate is 16 percent. With this information, we can infer that the actual output of this economy is:
A) $6 trillion.
B) $11.5 trillion.
C) $6.5 trillion.
D) $9 trillion.
Correct Answer:
Verified
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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
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Q53: Suppose that the economy has a structural
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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
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