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The Diagram Below Shows Two Budget Deficit Functions for a Hypothetical

Question 25

Multiple Choice

The diagram below shows two budget deficit functions for a hypothetical economy. The diagram below shows two budget deficit functions for a hypothetical economy. FIGURE 31-2 Refer to Figure 31-2.Initially,suppose the economy is at point A.If the government were to then implement a fiscal expansion,the structural budget deficit would be A) $4 million. B) $6 million. C) $7 million. D) $10 million. E) Insufficient information to know. FIGURE 31-2 Refer to Figure 31-2.Initially,suppose the economy is at point A.If the government were to then implement a fiscal expansion,the structural budget deficit would be


A) $4 million.
B) $6 million.
C) $7 million.
D) $10 million.
E) Insufficient information to know.

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