Figure 16-1

-In Figure 16-1, there are four levels of income.G is government expenditures and TT is taxes less transfers.Y₃ is the full-employment level of income.At Y₃
A) there is an official deficit but a structural budget balance.
B) there is a structural deficit but an official budget surplus.
C) the official and structural deficit are in balance.
D) both the official and structural budgets show a deficit.

Question

Figure 16-1
 
-In Figure 16-1, there are four levels of income.G is government expenditures and TT is taxes less transfers.Y₃ is the full-employment level of income.At Y₃
A) there is an official deficit but a structural budget balance. 
B) there is a structural deficit but an official budget surplus. 
C) the official and structural deficit are in balance. 
D) both the official and structural budgets show a deficit.

Quizplus · Accepted Answer

The Answer of Figure 16-1
 
-In Figure 16-1, there are four levels of income.G is government expenditures and TT is taxes less transfers.Y₃ is the full-employment level of income.At Y₃
A) there is an official deficit but a structural budget balance. 
B) there is a structural deficit but an official budget surplus. 
C) the official and structural deficit are in balance. 
D) both the official and structural budgets show a deficit.

Figure 16-1 -In Figure 16-1, There Are Four Levels of Income.G Is