The table below shows the relationship between the deficit and real GDP. Draw a diagram depicting this relationship. Assume potential GDP is $6,900 billion. 
(A)What is the structural deficit?
(B)If real GDP is $7,050 billion, what is the cyclical deficit?
(C)If real GDP is $6,750 billion, what is the cyclical deficit?
(D)Show what will happen to the relationship between the deficit and real GDP if Medicare and federal prison incarceration costs increase without any corresponding increase in taxes or reduction in other programs.
Definitions:
Cognitive-behavioral Therapy
A psycho-social intervention that aims to improve mental health by focusing on changing unhelpful cognitive distortions and behaviors.
Psychodynamic Therapy
A therapeutic approach that emphasizes understanding the psychological forces underlying human behaviors, feelings, and emotions.
Reactive Nervous System
A part of the nervous system that responds to stimuli from the environment, often associated with automatic or reflexive actions.
Token Economy
A behavioral modification technique where desirable behaviors are rewarded with tokens that can be exchanged for various privileges or treats.
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