During an above-full-employment equilibrium, actual GDP is greater than potential GDP

Suppose the economy is in a recessionary gap. If government expenditures are currently $700 billion and tax revenues are currently $450 billion, the (total) budget deficit is _____________. Assume that economists estimate that if the economy were operating at full employment then government expenditures would be $600 billion and tax revenues would be $500 billion. The structural deficit is

_________________ and the cyclical deficit is _______________. A) $1.15 trillion; $1.1 trillion; $100 billion B) $400 billion; $300 billion; $100 billion C) $400 billion; $100 billion; $300 billion D) $250 billion; $100 billion; $150 billion

According to the Laffer curve, when the tax rate is 100 percent, tax revenue will be:

A. 0. B. at the maximum value. C. the same as it would be at a 50 percent tax rate. D. greater than it would be at a 50 percent tax rate.