-Economic data for a mythical economy in the years 2012-2016 are summarized in the figure above. Assume that the spending formulas and tax schedules are identical for all years. When the economy is at less than full employment, the government has a

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When an economy is operating at less than full employment, it typically means that output is below potential, leading to lower tax revenues and higher government spending on unemployment benefits and other automatic stabilizers. This situation usually results in a budget deficit, as government expenditures exceed revenues.

-Economic Data for a Mythical Economy in the Years 2012-2016