Refer to the diagram, where T is tax revenues and G is government expenditures. All ﬁgures are in billions of dollars. If the full-employment GDP is $400 billion, while the actual GDP is $300 billion, the
Cyclical deﬁcit is
A) $30 billion.
B) $20 billion.
C) $10 billion.
D) $50 billion.

Question

Refer to the diagram, where T is tax revenues and G is government expenditures. All ﬁgures are in billions of dollars. If the full-employment GDP is $400 billion, while the actual GDP is $300 billion, the
Cyclical deﬁcit is
A) $30 billion. 
B) $20 billion. 
C) $10 billion. 
D) $50 billion.

Quizplus · Accepted Answer

The Answer of  Refer to the diagram, where T is tax revenues and G is government expenditures. All ﬁgures are in billions of dollars. If the full-employment GDP is $400 billion, while the actual GDP is $300 billion, the
Cyclical deﬁcit is
A) $30 billion. 
B) $20 billion. 
C) $10 billion. 
D) $50 billion.

Refer to the Diagram, Where T Is Tax Revenues and G