The Diagram Below Shows Two Budget Deficit Functions for a Hypothetical

question 10

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 B0.Real GDP (Y) is $100 million.If the level of potential output (Y*) were $300 million,the structural budget deficit would be

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

---

Definitions:

Forms of Commitment

Refers to the different ways individuals can be attached to an organization, including emotional attachment (affective commitment), obligation (normative commitment), and cost-based attachment (continuance commitment).

Normative Commitment

A feeling of obligation to remain with an organization because of moral or ethical beliefs.

Time Employed

The duration or period an individual has been working in a particular job or organization.

Normative Commitment

A feeling of obligation to continue employment with an organization due to shared values and beliefs.