Question

When a country's economy is producing at a level that exceeds its potential gdp, the standardized employment deficit will show a ________ than the actual deficit?

Answer 1

smaller deficit.

Step-by-step explanation:

A smaller deficit than the current deficit is the ideal answer to fill the gap. A deficit occurs when expenditures are greater than revenues, so in an economy with a surplus, revenues will be larger than expenses, so the standardized employment deficit will be smaller than the current one, because an economy with a GDP that exceeds its potential , is an economy that is expanding, production is larger, which consequently increases the employment rate and decreases the deficit.