If the actual budget deficit is $100 billion, the economy is operating $250 billion above its potential, and the marginal tax rate is 20 percent, what are the structural deficit and the cyclical deficit?

Financial Management: Theory & Practice
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ISBN:9781337909730
Author:Brigham
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If the actual budget deficit solve this general accounting question

If the actual budget deficit is $100 billion, the
economy is operating $250 billion above its
potential, and the marginal tax rate is 20 percent,
what are the structural deficit and the cyclical
deficit?
Transcribed Image Text:If the actual budget deficit is $100 billion, the economy is operating $250 billion above its potential, and the marginal tax rate is 20 percent, what are the structural deficit and the cyclical deficit?
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