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X Xnip #3 T, d tax revenues, T (billions) Government expenditures, G, and G h GDPA GDP3 (year 4) (year 3) Real domestic output, GDP

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X Xnip #3 T, d tax revenues, T (billions) Government expenditures, G, and G h GDPA GDP3 (year 4) (year 3) Real domestic output, GDP "The above chart shows two different tax regimes labelled T1 and T2 (T2 indicates a decreased tax rate at all levels of GDP). ~ a) When T1 is the tax rate ... in year 3...what is the cyclically-adjusted deficit or surplus (in billions of dollars)?

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