Suppose That an Economy Is Simultaneously Experiencing a Budget Deficit

question 97

Multiple Choice

Suppose that an economy is simultaneously experiencing a budget deficit and an inflationary gap.If the government attempts to balance the budget,what will be the effect?

• A)Real GDP will increase,and the deficit will increase.
• B)Real GDP will increase,and the deficit will decrease.
• C)Real GDP will decrease,and the deficit will increase.
• D)Real GDP will decrease,and the deficit will decrease.

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Definitions:

Actual Performance

The real, observable output or results that an individual or organization achieves, as opposed to expected or planned outcomes.

Exceeded The Standard

Surpassing the established benchmarks or expectations set for performance or quality.

Desired Performance

The specific level of output or efficiency an organization aims to achieve through its employees or systems.

Actual Performance

The real, measurable outcomes or results achieved by an individual, team, or organization.