If the actual budget deficit is $140 billion, the economy is operating $300 billion above its potential, and the marginal tax rate is 11 percent, what are the structural deficit or surplus and the cyclical deficit or surplus?
If the actual budget deficit is $140 billion, the economy is operating $300 billion above its potential, and the marginal tax rate is 11 percent, what are the structural deficit or surplus and the cyclical deficit or surplus?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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If the actual budget deficit is $140 billion, the economy is operating $300 billion above its potential, and the marginal tax rate is 11 percent, what are the structural deficit or surplus and the cyclical deficit or surplus? Instructions: Enter your answers as whole numbers. The structural is $ 100 billion. The cyclical is $ 200 billion.
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