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Business, 05.05.2020 07:19 brittanysanders

Suppose the economy is in a recessionary gap. If government expenditures are currently $3.5 trillion and tax revenues are currently $2.9 trillion, the (total) budget deficit is . Assume that economists estimate that if the economy were operating at full employment, government expenditures would be $3.2 trillion and tax revenues would be $3.1 trillion. The structural deficit must be and the cyclical deficit must be .

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Suppose the economy is in a recessionary gap. If government expenditures are currently $3.5 trillion...
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