The graph shows how government outlays and revenues change when real GDP changes. The following graph shows how goverment revenues and outlays change when real GDP changes. Government revenues increase as real GDP increases. Government outlays fall as real GDP increases. Revenues, Outlays ($ billions) 20- 18- 16- 14- 12- 10- 8- 6- 4- 2- 0+ 0 20 40 60 80 100 120 140 160 180 200 real GDP ($ billions) Q G Suppose that potential GDP equals $60 billion and actual real GDP equals $80 billion. What is the structural budget balance? What is the cyclical budget balance? (Note: If you answer is a surplus, please enter a positive number. If your answer is a deficit, please enter a negative number.) The structural budget balance is The cyclical budget balance is

The graph shows how government outlays and revenues change when real GDP changes. The following graph shows how goverment revenues and outlays change when real GDP changes. Government revenues increase as real GDP increases. Government outlays fall as real GDP increases. Revenues, Outlays ($ billions) 20- 18- 16- 14- 12- 10- 8- 6- 4- 2- 0+ 0 20 40 60 80 100 120 140 160 180 200 real GDP ($ billions) Q G Suppose that potential GDP equals $60 billion and actual real GDP equals $80 billion. What is the structural budget balance? What is the cyclical budget balance? (Note: If you answer is a surplus, please enter a positive number. If your answer is a deficit, please enter a negative number.) The structural budget balance is The cyclical budget balance is

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter18: Debates In Macroeconomics Over The Role And Effects Of Government

Section18.10: Demand-side And Supply Side Views Of The Economy And Government Tools For The Changing Real Gdp

Problem 3ST

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