A cyclical deficit is the portion of the deficit that exists when:
A) the economy is at potential income.
B) the economy is below potential income.
C) inflation is not fully anticipated.
D) inflation is fully anticipated.
Correct Answer:
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Q21: If an economy operates below potential income,
Q22: When the government runs a deficit, it
Q23: A government can finance its budget deficit
Q24: The budget deficit or surplus is:
A)well defined
Q25: Suppose potential income is $60 billion, actual
Q27: The budget deficit or surplus is:
A)easy to
Q28: If a cyclical surplus exists, the economy
Q29: During World War II, the economic boom
Q30: If actual income is $300 billion, potential
Q31: If actual income is $300 billion, potential
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