Multiple Choice
-Refer to the above diagram. Assume that G and T2 are the relevant curves, the economy is currently at A, and the full-employment GDP is B. This economy has a(n) :
A) cyclically adjusted budget surplus.
B) actual budget deficit.
C) cyclically adjusted budget deficit.
D) actual budget surplus.
Correct Answer:
Verified
Related Questions
Q26: Another term for the full-employment budget is
Q27: The cyclically adjusted budget is also called