Refer to the following table for Waxwania:GovernmentExpenditures, G$ 170170Tax Revenues, T$ 90110130Real GDP$ 450550170650170150750170170850Instructions: In part a, enter your answers as a whole number. In part b, round your answer to 2 decimalplaces.a. Suppose that Waxwania is producing $550 of real GDP, whereas the potential real GDP (or full-employment real GDP) is $650. How large is its budget deficit?How large is its cyclically adjusted budget deficit?b. How large is its cyclically adjusted budget deficit as a percentage of potential real GDP?percentc. Is Waxwania's fiscal policy expansionary, or is it contractionary?(Click to select) :

A) Actual Real GDP = $550 Potentail Real GDP = $650 Government spending at real GDP of $550 = 170…

170 170 850 ructions: In part a, enter your answers as a whole number. In part b, round your answer t ces. uppose that Waxwania is producing $550 of real GDP, whereas the potential real GDP (o ployment real GDP) is $650. How large is its budget deficit? How large is its cyclically adjusted budget deficit? low large is its cyclically adjusted budget deficit as a percentage of potential real GDP? |percent Waxwania's fiscal policy expansionary, or is it contractionary? (Click to select)

170 170 850 ructions: In part a, enter your answers as a whole number. In part b, round your answer t ces. uppose that Waxwania is producing $550 of real GDP, whereas the potential real GDP (o ployment real GDP) is $650. How large is its budget deficit? How large is its cyclically adjusted budget deficit? low large is its cyclically adjusted budget deficit as a percentage of potential real GDP? |percent Waxwania's fiscal policy expansionary, or is it contractionary? (Click to select)

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter11: Gross Domestic Product

Section: Chapter Questions

Problem 6SQP

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