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Suppose the government of Ricardia has outlays equal to $135 billion, and a tax scheme that is related positively to GDP by the following equation:
Suppose the government of Ricardia has outlays equal to $135 billion, and a tax scheme that is related positively to GDP by the following equation: Taxes = $25 billion + 0.2 (GDP). If potential GDP = $600 billion and actual GDP = $550 billion. The structural balance equals and the cyclical balance equals . O A. -$15 billion; $20 billion 0 B. $10 billion; -$10 billion 0 C. $10 billion, $ 0 billion 0 D. $15 billion, -$10 billion
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