diagram, in which Tis tax revenues and G is government expenditures. All figures are in billions of dol ars. If the full-employment he actual GDP is $200 billion: (Show your calculations) the actual budget deficit?

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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O $ 100 200 300 400 500 600 700 800 900
GDP
Refer to the diagram, in which Tis tax revenues and G is government expenditures. All figures are in billions of dol ars. If the full-employment GDP is $400
billion while the actual GDP is $200 billion: (Show your calculations)
a What is the actual budget deficit?
b. What is the cyclically adjusted budget deficit?
c. The value of cyclically adjusted deficit identifies which type of discretionary fiscal policy
Transcribed Image Text:O $ 100 200 300 400 500 600 700 800 900 GDP Refer to the diagram, in which Tis tax revenues and G is government expenditures. All figures are in billions of dol ars. If the full-employment GDP is $400 billion while the actual GDP is $200 billion: (Show your calculations) a What is the actual budget deficit? b. What is the cyclically adjusted budget deficit? c. The value of cyclically adjusted deficit identifies which type of discretionary fiscal policy
T.G ($)
100
T
80
60
40
20
0 $ 100 200 300 400 500 600 700 800 900
GDP
Transcribed Image Text:T.G ($) 100 T 80 60 40 20 0 $ 100 200 300 400 500 600 700 800 900 GDP
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