Examlex

Solved

In Year 1 Suppose the Economy Is at Potential GDP

question 5

Essay

In Year 1 suppose the economy is at potential GDP and that the federal budget deficit equals $100 billion.In Year 2 the federal budget deficit rises to $150 billion,but the cyclically adjusted budget deficit falls to $75 billion.How can the actual budget deficit rise and the cyclically adjusted budget deficit fall?


Definitions:

Related Questions