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 and actual GDP are each $400 billion, this economy will
Realize a
A) cyclically adjusted deﬁcit of $20 billion.
B) cyclical deﬁcit of $20 billion.
C) cyclical surplus of $20 billion.
D) cyclically adjusted deﬁcit of zero.

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 and actual GDP are each $400 billion, this economy will
Realize a
A) cyclically adjusted deﬁcit of $20 billion. 
B) cyclical deﬁcit of $20 billion. 
C) cyclical surplus of $20 billion. 
D) cyclically adjusted deﬁcit of zero.

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 and actual GDP are each $400 billion, this economy will
Realize a
A) cyclically adjusted deﬁcit of $20 billion. 
B) cyclical deﬁcit of $20 billion. 
C) cyclical surplus of $20 billion. 
D) cyclically adjusted deﬁcit of zero.

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