If Real GDP Equals B in the Figure Below,then

question 17

Multiple Choice

If real GDP equals B in the figure below,then

• A)None of these
• B)there is a structural surplus.
• C)there is a structural deficit.
• D)the difference between government expenditures and tax revenue is equal to zero.
• E)real GDP equals potential GDP.

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Definitions:

Commercial Paper

A short-term, unsecured debt instrument issued by corporations to fund immediate needs.

Simple Interest

Interest assessed only on the starting principal, or on the remaining portion of the principal that is due.

Annual Rate

The interest rate for a period of one year, not accounting for compounding within that year.

Promissory Note

A financial paper embodying a vow by one individual or entity to transfer a stated sum of money to another, either on demand or on a specified forthcoming date.