-Refer to the above diagram where T is tax revenues and G is government expenditures.All figures are in billions of dollars.If the full-employment GDP and actual GDP are each $400 billion,this economy will realize a:

Question

Quizplus · Accepted Answer

The full-employment GDP and actual GDP are each $400 billion, so the economy is at full employment. The government is running a deficit of $20 billion, so the correct answer is A.

-Refer to the Above Diagram Where T Is Tax Revenues