Multiple Choice
-Refer to Figure 7.6. All figures are in billions of dollars. If the potential GDP is $600 billion while the actual GDP is $400 billion, the actual budget balance is:
A) a deficit of $200 billion.
B) a surplus of $60 billion.
C) a surplus of $40 billion.
D) a deficit of $20 billion.
Correct Answer:
Verified
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