Use the Figure Below to Answer the Following Questions

question 51

Multiple Choice

Use the figure below to answer the following questions.

Figure 29.3.1
-Refer to Figure 29.3.1, which shows the outlays and revenues for the government of Pianoland. If potential GDP is $750 billion, and actual real GDP is $650 billion, the cyclical deficit is

• A)zero.
• B)$60 billion.
• C)$40 billion.
• D)equal to the structural deficit.
• E)$180 billion.

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