Suppose the federal budget surplus for the year was $350 billion and the economy was in an economic expansion
If the economy had been at potential GDP, it is estimated that tax revenue would have been $140 billion lower and government spending on transfer payments would have been $50 billion higher. Using these estimates, the cyclically adjusted budget A) deficit was $440 billion.
B) deficit was $260 billion.
C) surplus was $160 billion.
D) surplus was $540 billion.
C
Economics
You might also like to view...
A straight line falls when moving rightward along it. Hence the slope of the line is
A) negative. B) positive. C) zero because it is a straight line. D) undefined. E) perhaps positive, negative, or zero, but without more information it is impossible to determine.
Economics
Explain why both rich and poor people experience scarcity
What will be an ideal response?
Economics