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 cyclical component of the actual budget deficit would be

Question

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 cyclical component of the actual budget deficit would be

Quizplus · Accepted Answer

The Answer of 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 cyclical component of the actual budget deficit would be

The Diagram Below Shows Two Budget Deficit Functions for a Hypothetical