Refer to the figure below to answer the questions that follow. Surplus Deic GOP, Rea domestie et GOP GOP, a. The cyclically adjusted budget measures what the federal deficit or suplus would be if the economy reached the. level of GDP O normal O equilibrium O full-employment O actual Govemment expendtures G sanuana pue

Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter24: Fiscal Policy
Section: Chapter Questions
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Refer to the figure below to answer the questions that follow.
Surplus
Deficit
GOP,
GDP,
Real domestic output, GDP
GOP,
a. The cyclically adjusted budget measures what the federal deficit or surplus would be if the economy reached the
of GDP.
level
O normal
O equilibrium
O full-employment
O actual
b. If the cyclically adjusted budget is balanced, then
Govemment expendtures. G.
and tax nevenues,
Transcribed Image Text:Refer to the figure below to answer the questions that follow. Surplus Deficit GOP, GDP, Real domestic output, GDP GOP, a. The cyclically adjusted budget measures what the federal deficit or surplus would be if the economy reached the of GDP. level O normal O equilibrium O full-employment O actual b. If the cyclically adjusted budget is balanced, then Govemment expendtures. G. and tax nevenues,
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