Assume that the total deficit is $100 billion and the economy is above

Assume that the total deficit is $100 billion and the economy is above potential output.

Now the level of economic activity falls back to its potential level output, leading to an decrease in tax revenues increase by $50 billion an increase in transfer payments fell by $10 billion. Then, what is the structural deficit? a. $100 billion
b. $110 billion
c. $150 billion
d. $160 billion
e. can’t tell based on information given.

ANSWER

D