Waxwania is producing $550 of real gdp, whereas the potential real gdp (or full-employment real gdp) is $650. how large is its budget deficit?

The answer is $100

Explanation:

With the data we have at our disposal on Waxwania, we can analyze that if the real GDP is $550, which would be the level of real production, that is, what it produced; and knowing that the real potential GDP is $650, that is, the level of production that the economy can reach with the efficient use of production factors, we can see that this economy is functioning at a lower level than it could. Therefore we can say that the budget deficit is $100.

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answer; commerce clearing house;