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The accompanying diagram shows two budget deficit functions for a hypothetical economy:Suppose the economy is at point A, the budget deficit function is B0, and the level of potential output is 75 million. The structural budget deficit would be8 million, 28 million,50 million, 20 million,225 million, 300 million,375 million, 450 million,525 million.Real GDP (millions of dollars)
The accompanying diagram shows two budget deficit functions for a …
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