Suppose potential GDP is $20 trillion. If the economy produces at potential, then the government budget deficit is $1 trillion. If actual GDP is $19 trillion, the government deficit is $1.25 trillion. The cyclically adjusted budget deficit is trillion (do not enter a '$' sign)
Suppose potential GDP is $20 trillion. If the economy produces at potential, then the government budget deficit is $1 trillion. If actual GDP is $19 trillion, the government deficit is $1.25 trillion. The cyclically adjusted budget deficit is trillion (do not enter a '$' sign)
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter30: Government Budgets And Fiscal Policy
Section: Chapter Questions
Problem 51P: A government starts off with a total debt of $3.5 billion. In year one, the government runs a...
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![Suppose potential GDP is $20 trillion. If the economy
produces at potential, then the government budget deficit is
$1 trillion. If actual GDP is $19 trillion, the government
deficit is $1.25 trillion.
The cyclically adjusted budget deficit
is
trillion (do not enter a '$' sign)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8ab58c2e-b628-4b36-b903-bfe5ab53f1f2%2Fa1492a89-fd78-4aa2-88f3-983fbc5dec5e%2F9fvqz84_processed.png&w=3840&q=75)
Transcribed Image Text:Suppose potential GDP is $20 trillion. If the economy
produces at potential, then the government budget deficit is
$1 trillion. If actual GDP is $19 trillion, the government
deficit is $1.25 trillion.
The cyclically adjusted budget deficit
is
trillion (do not enter a '$' sign)
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