Answer:
B. the economy were at potential GDP.
A cyclically adjusted deficit is a budget deficit caused by a slowing economy rather than fiscal policies such as increasing discretionary spending or decreasing the tax rates.
Explanation:
The cyclically adjusted budget deficit or surplus is the deficit or surplus in the federal government budget if the economy were at potential GDP. The federal budget deficit is the year-to-year shortfall in tax revenues relative to government spending (T < G+TR), financed through government bonds.
A budget deficit implies lower taxes and increased Government spending (G), this will increase AD and this may cause higher real GDP and inflation. For example, in 2009, the UK lowered VAT in an effort to boost consumer spending, hit by the great recession.
I am sorry I didn’t know the answer
Answer:
Upper state = 135
Down State = 92
Difference = 135-92= 43
<u>Exercise Price</u> <u>Hedge Ratio
</u>
135 0/43 = 0.0000
122 13/43 = 0.302
112 23/43 = 0.535
92 43/43 = 1.000
