The Table Below Shows the Relationship Between the Deficit and Real

question 42

Essay

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. $$\begin{array} { | c | c | } \hline \begin{array} { c } \text { Real GDP (billions of } \\\text { dollars) }\end{array} & \begin{array} { c } \text { Deficit (billions of } \\\text { dollars) }\end{array} \\\hline 6,750 & 280 \\\hline 6,825 & 260 \\\hline 6,900 & 240 \\\hline 6,975 & 220 \\\hline 7,050 & 200 \\\hline\end{array}$$ (A) What is the structural deficit?
(B) If real GDP is \$7,050 billian, what is the cyclical deficit?
(C) If real GDP is \$6,750 billian, 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 writhout any carresponding increase in tares or reduction in ather proprams.

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Definitions:

In Vivo Exposure

A behavioral therapy technique that involves direct exposure to the feared stimulus in real-life situations.

Behavior Therapist

A mental health professional specializing in treating psychological disorders by changing an individual's behaviors and reactions through various forms of therapy.

Systematic Desensitization

Behavioral technique used to treat phobias, in which a client is asked to make a list of ordered fears and taught to relax while concentrating on those fears.

Feared Object

An object or entity that evokes a strong negative emotional response of fear through conditioning or past experiences.