A cyclical surplus is a
A. budget surplus only because real GDP is less than potential GDP.
B. budget surplus only because real GDP is greater than potential GDP.
C. budget surplus only because real GDP is equal to potential GDP.
D. nominal, as opposed to real, budget surplus.
Answer:B
A cyclical surplus is a
A. budget surplus only because real GDP is less than potential GDP. B. budget surplus only because real GDP is greater than potential GDP. C. budget surplus only because real GDP is equal to potential GDP. D. nominal, as opposed to real, budget surplus.