Refer to the Diagram, Where T Is Tax Revenues and G

question 328

Multiple Choice

Refer to the diagram, where T is tax revenues and G is government expenditures. All figures are in billions of dollars. If the full-employment GDP is $400 billion, while the actual GDP is $300 billion, the
Cyclical deficit is

• A) $30 billion.
• B) $20 billion.
• C) $10 billion.
• D) $50 billion.

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