When Real GDP Equals Potential GDP of $12 Trillion, the Budget

question 53

Multiple Choice

When real GDP equals potential GDP of $12 trillion, the budget deficit is $1 trillion. Real GDP actually equals $14 trillion and the budget surplus is $3 trillion. The economy has a structural ________ and a cyclical ________.

• A)deficit of $1 trillion; surplus of $4 trillion
• B)deficit of $1 trillion; surplus of $2 trillion
• C)surplus of $4 trillion; deficit of $1 trillion
• D)surplus of $3 trillion; surplus of $2 trillion
• E)deficit of $4 trillion; surplus of $1 trillion

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Definitions:

Age Differences

Variations in behavior, attitudes, and expectations often attributed to individuals being of different chronological ages.

Cohort Differences

Variations in the characteristics or experiences of individuals belonging to different age or generational groups.

Emotional Self-regulation

The ability to monitor and manage one's own emotions, to begin or inhibit behavior in accordance with emotional responses.

Emotional Reactions

Immediate responses to stimuli that involve feelings, physiological arousal, and changes in facial expression, often unconsciously processed.