Consider the budget balance (BB) equation of BB = tY -G Assume that t is 0.2, potential output is 1000 and G is 180.
Find the false statement from the following statements:
A) The structural budget balance is 20.
B) With negative GDP gap of 20%, the budget balance is -20.
C) With negative GDP, the structural budget balance will be less than 20.
D) There will be zero budget balance when Y is 900.
Correct Answer:
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Q51: Q52: Q53: Q54: The actual budget balance of the federal Q55: Which of the following statements is false? Q57: All of the following would be included Q58: _change spending levels or tax rates to Q59: The progressive income tax and unemployment compensation Q60: "Built-in stabilizers"imply that: Q61: If the government pursues discretionary fiscal policy: Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents
A)
A)an annually balanced budget will
A)
