1. Use the graph below to answer the following questions: BB (Go fo) BB, (G₁.) 4700 5000 5300 Real Income (Y) a. In the figure above, if the budget line is BB0 and the natural real GDP is $5300, what is the structural surplus or deficit? b. In the figure above, if the budget line is BB0 and the natural real GDP is $5300, what is the cyclical surplus or deficit? c. In the figure above, if the budget line BB1, the natural real GDP is $5300, and actual real GDP is $5000, what is the cyclical budget surplus or deficit? d. In the figure above, if the budget line BB1, the natural real GDP is $5300, and actual real GDP is $5000, what is the structural budget surplus or deficit?
1. Use the graph below to answer the following questions: BB (Go fo) BB, (G₁.) 4700 5000 5300 Real Income (Y) a. In the figure above, if the budget line is BB0 and the natural real GDP is $5300, what is the structural surplus or deficit? b. In the figure above, if the budget line is BB0 and the natural real GDP is $5300, what is the cyclical surplus or deficit? c. In the figure above, if the budget line BB1, the natural real GDP is $5300, and actual real GDP is $5000, what is the cyclical budget surplus or deficit? d. In the figure above, if the budget line BB1, the natural real GDP is $5300, and actual real GDP is $5000, what is the structural budget surplus or deficit?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![1. Use the graph below to answer the following questions:
BB, (Go. to)
BB, (G,. t,)
D.
5300
5000
Real Income (Y)
4700
a. In the figure above, if the budget line is BBo and the natural real GDP is $5300, what is
the structural surplus or deficit?
b. In the figure above, if the budget line is BBo and the natural real GDP is $5300, what is
the cyclical surplus or deficit?
c. In the figure above, if the budget line BB1, the natural real GDP is $5300, and actual real
GDP is $5000, what is the cyclical budget surplus or deficit?
d. In the figure above, if the budget line BB1, the natural real GDP is $5300, and actual real
GDP is $5000, what is the structural budget surplus or deficit?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffbe4d004-b0c7-4fb9-bd84-121b248ea820%2F4c3ccdb5-acf0-4dbb-bff9-27db423fd505%2Fdgx69b8_processed.png&w=3840&q=75)
Transcribed Image Text:1. Use the graph below to answer the following questions:
BB, (Go. to)
BB, (G,. t,)
D.
5300
5000
Real Income (Y)
4700
a. In the figure above, if the budget line is BBo and the natural real GDP is $5300, what is
the structural surplus or deficit?
b. In the figure above, if the budget line is BBo and the natural real GDP is $5300, what is
the cyclical surplus or deficit?
c. In the figure above, if the budget line BB1, the natural real GDP is $5300, and actual real
GDP is $5000, what is the cyclical budget surplus or deficit?
d. In the figure above, if the budget line BB1, the natural real GDP is $5300, and actual real
GDP is $5000, what is the structural budget surplus or deficit?
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