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The Diagram Below Shows Two Budget Deficit Functions for a Hypothetical

Question 59

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The diagram below shows two budget deficit functions for a hypothetical economy. The diagram below shows two budget deficit functions for a hypothetical economy. FIGURE 31-2 -Refer to Figure 31-2.Initially,suppose the economy is at point A on budget deficit function .Real GDP (Y) is $100 million.If the level of potential output (Y*) were $300 million,the structural budget deficit would be A) $2 million. B) $14 million. C) measured by the vertical distance between the horizontal axis and (at real GDP = 300) . D) measured by the vertical distance between point A and the budget deficit that would exist at real GDP = 300 million. E) Insufficient information to know. FIGURE 31-2
-Refer to Figure 31-2.Initially,suppose the economy is at point A on budget deficit function The diagram below shows two budget deficit functions for a hypothetical economy. FIGURE 31-2 -Refer to Figure 31-2.Initially,suppose the economy is at point A on budget deficit function .Real GDP (Y) is $100 million.If the level of potential output (Y*) were $300 million,the structural budget deficit would be A) $2 million. B) $14 million. C) measured by the vertical distance between the horizontal axis and (at real GDP = 300) . D) measured by the vertical distance between point A and the budget deficit that would exist at real GDP = 300 million. E) Insufficient information to know. .Real GDP (Y) is $100 million.If the level of potential output (Y*) were $300 million,the structural budget deficit would be


A) $2 million.
B) $14 million.
C) measured by the vertical distance between the horizontal axis and The diagram below shows two budget deficit functions for a hypothetical economy. FIGURE 31-2 -Refer to Figure 31-2.Initially,suppose the economy is at point A on budget deficit function .Real GDP (Y) is $100 million.If the level of potential output (Y*) were $300 million,the structural budget deficit would be A) $2 million. B) $14 million. C) measured by the vertical distance between the horizontal axis and (at real GDP = 300) . D) measured by the vertical distance between point A and the budget deficit that would exist at real GDP = 300 million. E) Insufficient information to know. (at real GDP = 300) .
D) measured by the vertical distance between point A and the budget deficit that would exist at real GDP = 300 million.
E) Insufficient information to know.

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