Chapter 34 - Deficits and Debt
28. In the mid 2000s, actual output grew so fast that by the end of the period, it significantly exceeded potential output. Based on just this information, the budget moved into:
A. surplus during this period as the structural deficit moved into surplus.B. surplus during this period as the passive deficit moved into surplus.C. deficit during this period as the structural surplus moved into deficit.D. deficit during this period as the passive surplus moved into deficit.
29. In 2007, the U.S. economy was operating close to potential. The budget deficits experienced by the U.S. in 2007 was:
30. During World War II, the economic boom that raised U.S. equilibrium income above potential income:
31. If actual income is $300 billion, potential income is $350 billion, the total deficit is $20 billion, and tax revenue increases with income, then the structural deficit can be any of the following except