Figure 32-1 -In Figure 32-1, 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

Quizplus · Accepted Answer

The Answer of Figure 32-1 -In Figure 32-1, 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 32-1 ​

Figure 32-1