Suppose an Economy Is Currently Operating at Potential Real GDP

question 144

Multiple Choice

Suppose an economy is currently operating at Potential Real GDP and government expenditure is greater than net tax revenue.In this case,the government has a:

• A)structurally balanced budget.
• B)cyclical deficit budget balance.
• C)structural deficit budget balance.
• D)cyclically balanced budget.

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Definitions:

Group Polarization

The phenomenon where a group of individuals tends to make decisions that are more extreme than the initial inclination of its members.

Approval

The act of accepting or consenting to something, often given formally or officially.

Learner

An individual who is acquiring knowledge or skill through study, experience, or being taught.

Delivering Shock

An experimental method often used in psychological research to study obedience or the impact of punishments on behavior.