MBA 530: Economic and Statistical Analysis (MBA 530)

- Define the cyclically adjusted budget, explain its significance, and state why it may differ from the actual budget. Suppose the full employment, noninflationary level of real output is GDP3 (not GDP2) in the economy depicted in figure 13.3. If the economy is operating at GDP2, instead of GDP3, what is the stat us of its cyclically adjusted budget? The status of its current fiscal policy? What change in fiscal policy would you recommend? How would you accomplish that in terms of the G and T li...