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.

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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 In Figure 32-1, There Are Four Levels of Income. G