The Diagram Below Shows Two Budget Deficit Functions for a Hypothetical

question 114

Multiple Choice

The diagram below shows two budget deficit functions for a hypothetical economy. FIGURE 31-2 Refer to Figure 31-2.Initially,suppose the economy is at point A on budget deficit function .Real GDP (Y) is $100 million.If the level of potential output (Y*) were $300 million,the cyclical component of the actual budget deficit would be

• A)$4 million.
• B)$6.5 million.
• C)$7.5 million.
• D)$14 million.
• E)Insufficient information to know.

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Definitions:

Avoidance-Avoidance Conflict

A psychological conflict that arises when an individual must choose between two negative or undesirable options.

Performance Goals

Objectives set for specific achievements or outcomes, often used to evaluate an individual's effectiveness.

Mastery Goals

Objectives focused on developing competence or mastering a skill rather than comparing oneself to others.

Need For Achievement

A psychological drive that motivates individuals to accomplish goals and excel.