Refer to the following table for Waxwania: Government Expenditures, G Tax Revenues, T Real GDP $180 $90 $450 180 110 550 180 130 650 180 150 750 180 170 850 Instructions: In part a, enter your answers as a whole number. In part b, round your answer to 2 decimal places. 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? 24 b. How large is its cyclically adjusted budget deficit as a percentage of potential real GDP? percent c. Is Waxwania's fiscal policy expansionary, or is it contractionary? |(Click to select) ♥

Refer to the following table for Waxwania: Government Expenditures, G Tax Revenues, T Real GDP $180 $90 $450 180 110 550 180 130 650 180 150 750 180 170 850 Instructions: In part a, enter your answers as a whole number. In part b, round your answer to 2 decimal places. 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? 24 b. How large is its cyclically adjusted budget deficit as a percentage of potential real GDP? percent c. Is Waxwania's fiscal policy expansionary, or is it contractionary? |(Click to select) ♥

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter9: Demand-side Equilibrium: Unemployment Or Inflation?

Section: Chapter Questions

Problem 4TY

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