Refer to the accompanying table for Waxwania.

Government Expenditures, G- 180, 180, 180, 180 ,180

Tax Revenues, T - 90, 110, 130, 150, 170

Real GDP - $450, 550, 650, 750, 850

Suppose Waxwania is producing $550 of real GDP, whereas the potential real GDP (= full-employment real GDP) is $650.

a.How large is its budget deficit?

$billion

b.Its cyclically adjusted budget deficit?

$billion

c.Its cyclically adjusted budget deficit as a percentage of potential real GDP?

Instructions: Round your answer to two decimal places.

percent

d.Is Waxwania's fiscal policy expansionary or contractionary?

(Click to select)

Expansionary

Contractionary