The Diagram Below Shows the Budget Deficit Function for a Government

Multiple Choice

The diagram below shows the budget deficit function for a government in a hypothetical economy. FIGURE 31-1 Refer to Figure 31-1.Initially,suppose real GDP is $100 million and the budget deficit is $4 million,as shown by point A on the graph.Which of the following is consistent with a move from point A to point B?

A) implementation of an expansionary fiscal policy
B) implementation of a contractionary fiscal policy
C) implementation of a contractionary monetary policy
D) the economy entering into a recession
E) the economy entering into a boom