100 T. 80 60 40 20 O $ 100 200 300 400 500 600 700 800 900 GDP Refer to the diagram, in which T is tax revenues and Gis government expenditures Al tigures are in billions of dotars the temployment ODP S00 billion while the actual GDP is $200 bilion: (Show your calculations) a. What is the actual budget deficit? b. What is the cyclically adjusted budget deficit? c. The value of cyclically adjusted deficit identifies which type of discretionary fiscal policy? G T.G ($)

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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100
T.
80
G
60
40
O $ 100 200 300 400 500 600 700 800 900
GDP
Refer to the diagram, in which Tis tax revenues and Gis government expenditures Al figures are in billons of doltars if the ful-employment ODP400
billion while the actual GDP is $200 billion: (Show your calcutations)
a. What is the actual budget deficit?
b. What is the cyclically adjusted budget deficit?
c. The value of cyclically adjusted deficit identifies which type of discretionary fiscal policy?
20
G T.G ($)
Transcribed Image Text:100 T. 80 G 60 40 O $ 100 200 300 400 500 600 700 800 900 GDP Refer to the diagram, in which Tis tax revenues and Gis government expenditures Al figures are in billons of doltars if the ful-employment ODP400 billion while the actual GDP is $200 billion: (Show your calcutations) a. What is the actual budget deficit? b. What is the cyclically adjusted budget deficit? c. The value of cyclically adjusted deficit identifies which type of discretionary fiscal policy? 20 G T.G ($)
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