Refer to the accompanying table for Waxwania.   Government Expenditures, G Tax Revenues, T Real GDP $190 100 $500 190 120 600 190 140 700 190 160 800 190 180 900 a. What is the marginal tax rate in Waxwania?  ____percent        --The average tax rate?  _____percent

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Refer to the accompanying table for Waxwania.
 

Government Expenditures, G Tax Revenues, T Real GDP
$190 100 $500
190 120 600
190 140 700
190 160 800
190 180 900


a. What is the marginal tax rate in Waxwania?  ____percent

       --The average tax rate?  _____percent

         

b. Suppose Waxwania is producing $600 of real GDP, whereas the potential real GDP (or full-employment real GDP) is $700.

-How large is its budget deficit? $____ 

-Its cyclically adjusted budget deficit? $____ 

-Its cyclically adjusted budget deficit as a percentage of potential real GDP?________ percent 



        

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