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Student Question The accompanying diagram shows two budget deficit functions for a hypothetical economy. Suppose the economy is at point A, the budget deficit

Student Question The accompanying diagram shows two budget deficit functions for a hypothetical economy.

Student Question The accompanying diagram shows two budget deficit functions for a hypothetical economy. Suppose the economy is at point A, the budget deficit function is Bo and the level of potential output is $50 million. The structural budget deficit would be OA. $21 million. B. $6 million O C. $0. OD. -$15 million. Budget Surplus Deffat (millions of dollars) 27 24- 21+ 18- 154 H 50 B 100 150 200 250 Real GDP (millions of dollars) 300 350 a

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