Suppose the economy is in a recessionary gap.If government expenditures are currently $1.4 trillion and tax revenues are currently $1 trillion,the (total) budget deficit is _____________.Assume that economists estimate that if the economy were operating at full employment,government expenditures would be $1.2 trillion and tax revenues would be $1.1 trillion.The structural deficit is _________________ and the cyclical deficit is _______________.
A) $2.4 trillion;$2.2 trillion;$200 billion
B) $400 billion;$300 billion;$100 billion
C) $400 billion;$100 billion;$300 billion
D) $300 billion;$100 billion;$400 billion
Correct Answer:
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