If automatic stabilizers reduce the federal deficit by $60 billion for every 1 percent increase in real GDP growth, what will happen to the deficit balance if the economy's growth changes from 3 percent to -1 percent? Using this information, identify the change in the GDP growth rate and calculate the resulting change in the deficit balance. Instructions: Enter your responses as a whole number. For Part a. if you are entering a negative number be sure to include a negative sign (-) in front of that number. For Part b. enter your response as a positive value. a. Change in GDP growth rate b. Change in deficit balance The deficit will [[Click to select) by $ billion.

If automatic stabilizers reduce the federal deficit by $60 billion for every 1 percent increase in real GDP growth, what will happen to the deficit balance if the economy's growth changes from 3 percent to -1 percent? Using this information, identify the change in the GDP growth rate and calculate the resulting change in the deficit balance. Instructions: Enter your responses as a whole number. For Part a. if you are entering a negative number be sure to include a negative sign (-) in front of that number. For Part b. enter your response as a positive value. a. Change in GDP growth rate b. Change in deficit balance The deficit will [[Click to select) by $ billion.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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