The graph shows the outlays and receipts curves for an economy. Draw a vertical line at a value of potential GDP at which a structural surplus exists. Label it 1. Draw a vertical line at a value of potential GDP at which a structural deficit exists. Label it 2. The structural surplus or deficit OA. equals zero when the economy is in an expansion OB. is a cyclical phenomenon OC. is the budget balance that would occur if the economy were at full employment O D. is the actual budget balance
The graph shows the outlays and receipts curves for an economy. Draw a vertical line at a value of potential GDP at which a structural surplus exists. Label it 1. Draw a vertical line at a value of potential GDP at which a structural deficit exists. Label it 2. The structural surplus or deficit OA. equals zero when the economy is in an expansion OB. is a cyclical phenomenon OC. is the budget balance that would occur if the economy were at full employment O D. is the actual budget balance
Chapter1: Making Economics Decisions
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
Transcribed Image Text:The graph shows the outlays and receipts curves for an economy.
Draw a vertical line at a value of potential GDP at which a structural surplus exists. Label it 1.
Draw a vertical line at a value of potential GDP at which a structural deficit exists. Label it 2.
The structural surplus or deficit
O A. equals zero when the economy is in an expansion
OB. is a cyclical phenomenon
OC. is the budget balance that would occur if the economy were at full employment
OD. is the actual budget balance
5.04
4.0
3.0
2.0
1.0
Outlays and receipts (trillions of 2009 dollars)
Receipts
0.0+
9
Outlays
12
10 11
13 14
Real GDP (trillions of 2009 dollars)
>>> Draw only the objects specified in the question.
Q
Q
15
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