Refer to the following table for Waxwania:

Government Expenditures, G Tax Revenues, T Real GDP
$ 170 $ 110 $ 550
170 130 650
170 150 750
170 170 850
170 190 950
Instructions: In part a, enter your answers as a whole number. In part b, round your answer to 2 decimal places.

Suppose that Waxwania is producing $650 of real GDP, whereas the potential real GDP (or full-employment real GDP) is $750. How large is its budget deficit?
$
40

How large is its cyclically adjusted budget deficit?

$
0

How large is its cyclically adjusted budget deficit as a percentage of potential real GDP?
2.67
percent

Is Waxwania's fiscal policy expansionary, or is it contractionary?

Expansionary