How large is the structural and cyclical deficit

Reference no: EM13243553

Suppose that for a given year, governmentspending at full employment is estimated to be $850 billion. Tax revenues at fullemployment are estimated to be $790 billion. The actual deficit is $100 billion.

a. How large is the structural deficit?

b. How large is the cyclical deficit?

Reference no: EM13243553

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