The Diagram Below Shows Two Budget Deficit Functions for a Hypothetical

Multiple Choice

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 on budget deficit function .Real GDP (Y) is $100 million.If the level of potential output (Y*) were $300 million,the structural budget deficit would be

A) $2 million.
B) $14 million.
C) measured by the vertical distance between the horizontal axis and (at real GDP = 300) .
D) measured by the vertical distance between point A and the budget deficit that would exist at real GDP = 300 million.
E) Insufficient information to know.