Suppose the economy is at a full-employment GDP of $1 trillion and the tax revenue received by the federal government is always one-fifth of GDP. If planned government expenditure is $300 billion, the structural
A. Deficit is zero.
B. Deficit is $100 billion.
C. Deficit is $500 billion.
D. Surplus is $100 billion.
Answer: B
Economics
You might also like to view...
Does correlation always imply causation? Why or why not? Explain with the help of real-life examples
What will be an ideal response?
Economics
Losses
What will be an ideal response?
Economics
Explain the two relations that determine the evolution of output in the long run
What will be an ideal response?
Economics
All of the following result from price floors in agriculture EXCEPT
A) surpluses of agricultural products that have price floors. B) higher prices to consumers for agricultural products that have price floors. C) lower prices to consumers for agricultural products that have price floors. D) governmental bureaucracy.
Economics