1. Use the graph below to answer the following questions: BB (Go fo) BB, (G₁.) 4700 5000 5300 Real Income (Y) a. In the figure above, if the budget line is BB0 and the natural real GDP is $5300, what is the structural surplus or deficit? b. In the figure above, if the budget line is BB0 and the natural real GDP is $5300, what is the cyclical surplus or deficit? c. In the figure above, if the budget line BB1, the natural real GDP is $5300, and actual real GDP is $5000, what is the cyclical budget surplus or deficit? d. In the figure above, if the budget line BB1, the natural real GDP is $5300, and actual real GDP is $5000, what is the structural budget surplus or deficit?

1. Use the graph below to answer the following questions: BB (Go fo) BB, (G₁.) 4700 5000 5300 Real Income (Y) a. In the figure above, if the budget line is BB0 and the natural real GDP is $5300, what is the structural surplus or deficit? b. In the figure above, if the budget line is BB0 and the natural real GDP is $5300, what is the cyclical surplus or deficit? c. In the figure above, if the budget line BB1, the natural real GDP is $5300, and actual real GDP is $5000, what is the cyclical budget surplus or deficit? d. In the figure above, if the budget line BB1, the natural real GDP is $5300, and actual real GDP is $5000, what is the structural budget surplus or deficit?

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter11: Managing Aggregate Demand: Fiscal Policy

Section11.B: Algebraic Treatment Of Taxes And Fiscal Policy

Problem 3TY

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