The Diagram Below Shows Two Budget Deficit Functions for a Hypothetical

question 115

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,how much of the actual budget deficit is due to the underlying structure of fiscal policy and is therefore independent of the current level of GDP?

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

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Definitions:

Control Phase

The part of the strategic marketing planning process when managers evaluate the performance of the marketing strategy and take any necessary corrective actions.

Societal Issues

Challenges or problems that affect a large portion of society, which may include subjects like poverty, education, and environmental degradation.

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The area of applied ethics dealing with the moral principles behind the operation and regulation of marketing.

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