Question

When a country's economy is producing at a level that exceeds its potential GDP, the standardized employment budget will show a __________________ than the actual budget.

A. smaller surplus
B. smaller deficit
C. larger deficit
D. surplus

Answer 1

Answer:B. smaller deficit

Step-by-step explanation:

When the actual production exceeds the potential (GDP) Gross domestic of an economy it means that the country is imposing excess burden on the productive population,it shows that the country is using less manpower as expected to carry out it's production.This will lead to a smaller deficit in it's employment budget,it is recommended to have the actual production output the same as the potential (GDP) Gross domestic product.