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?

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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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?
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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