1. Use the graph below to answer the following questions:BB, (Go. to)BB, (G,. t,)D.53005000Real Income (Y)4700a. In the figure above, if the budget line is BBo and the natural real GDP is $5300, what isthe structural surplus or deficit?b. In the figure above, if the budget line is BBo and the natural real GDP is $5300, what isthe cyclical surplus or deficit?c. In the figure above, if the budget line BB1, the natural real GDP is $5300, and actual realGDP 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 realGDP is $5000, what is the structural budget surplus or deficit? 2. If government expenditures are $100 and the average tax rate is 0.6, derive the equationfor the budget line and draw the budget line. What is the real GDP when there is nodeficit and no surplus?

Given information BB0 and BB1 represented budget line Budget Line=T-G +ve on vertical axis…

1. Use the graph below to answer the following questions: BB, (G. BB, (G,. t,) F D. 5300 5000 Real Income (Y) 4700 a. In the figure above, if the budget line is BBo and the natural real GDP is $5300, what is the structural surplus or deficit? b. In the figure above, if the budget line is BBo 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

1. Use the graph below to answer the following questions: BB, (G. BB, (G,. t,) F D. 5300 5000 Real Income (Y) 4700 a. In the figure above, if the budget line is BBo and the natural real GDP is $5300, what is the structural surplus or deficit? b. In the figure above, if the budget line is BBo 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

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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1. Use the graph below to answer the following questions: BB, (Go. to) BB, (G,. t,) D. 5300 5000 Real Income (Y) 4700 a. In the figure above, if the budget line is BBo and the natural real GDP is $5300, what is the structural surplus or deficit? b. In the figure above, if the budget line is BBo 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?
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