Refer to the accompanying table for Waxwania: Instructions: Enter your answers as whole numbers.

Refer to the accompanying table for Waxwania:

Instructions:Enter your answers as whole numbers.

a. Waxwania is producing $550 of real GDP, whereas the potential real GDP (or full-employment real GDP) is $650. How large is its budget deficit? 

$.

     How large is its cyclically adjusted budget deficit?

    $.

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

Instructions:Round your answer to 2 decimal places.

Deficit =percent.

c. Is Waxwania’s fiscal policy expansionary or is it contractionary? 

.