-The figure above shows tax revenues and government expenditures in the economy of Meadowlake.Potential GDP is $15 trillion.If real GDP is $11 trillion,then the government has a ________.

Question

Quizplus · Accepted Answer

A cyclical deficit occurs when actual GDP is below potential GDP, leading to lower tax revenues and higher government spending on social programs, resulting in a deficit.

-The Figure Above Shows Tax Revenues and Government Expenditures in the Economy