Instructor Notes: 1) If real GDP is $7 trillion, the government has a balanced budget . 2) If real GDP is less than $7 trillion, expenditures exceed tax revenues and the government has a budget deficit. 3) If real GDP exceeds $7 trillion, expenditures are less than tax revenues and the government has a budget surplus. 4) If potential GDP is $7 trillion, there is no structural deficit--the budget deficits and surpluses are cyclical. 5) But if potential GDP is less than $7 trillion, there is a structural deficit. Nota del traductor: corresponde a la figura 13.5 (b) de la página 309