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Suppose we have the following information for 2010: Potential output: $22 trillion Actual output: $20 trillion Actual Deficit: $ 600 billion Tax Rate: 20%
Suppose we have the following information for 2010: Potential output: $22 trillion Actual output: $20 trillion Actual Deficit: $ 600 billion Tax Rate: 20% What is the structural deficit in 2010? What could be causing the structural deficit?
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The structural deficit refers to the portion of a fiscal deficit that exists even when the economy is operating at its potential output level To calcu...
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Macroeconomics
Authors: David C. Colander
10th edition
1259663043, 1259663048, 978-1259663048
