
-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 is $400 billion while the actual GDP is $200 billion,the cyclical deficit is:
A) $40 billion.
B) $20 billion.
C) zero.
D) $60 billion.
Correct Answer:
Verified
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A)government borrows in
A)since tax revenues
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