Fill in the blanks to make the following statements correct. a. When there is no change in
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Fill in the blanks to make the following statements correct.
a. When there is no change in the government's fiscal policy it is still possible for the budget deficit to fall because.
b. For a given set of fiscal policies, the budget deficit________ as real GDP rises and _______ as real GDP falls.
c. The structural budget deficit is the deficit that would exist if real GDP equalled_________ and the government's ________ were at their current levels.
d. Suppose the real interest rate is 2 percent and the growth rate of real GDP is 1 .5 percent. If the government wants to stabilize the debt-to-GDP ratio, then it is necessary to have \(a(n)\)_____________.
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