question archive Refer to the accompanying table for Waxmania
Subject:EconomicsPrice:2.88 Bought3
Refer to the accompanying table for Waxmania.
Governmen Expenditures G | Tax Revenues T | Real GDP |
---|---|---|
170 | 90 | 450 |
170 | 110 | 550 |
170 | 130 | 650 |
170 | 150 | 750 |
170 | 170 | 850 |
Instructions: Enter answer as the whole number
a. Waxmania is producing $550 of real GDP, whereas the potential real GDP or full-employment real GDP is $650. How large is its budget deficit? $ _____
How large is its cyclically adjusted budget deficit? $ _____
b. How large is the cyclically adjusted budget deficit as a percentage of potential real GDP?
Instructions: Round answer to 2 decimal places
Deficit = 10%
c. Is Waxmania's fiscal policy expansionary or is it contractionary? _____
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