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,how much of the actual budget deficit is due to the underlying structure of fiscal policy and is therefore independent of the current level of GDP?

A) $4 million.
B) $6.5 million.
C) $7.5 million.
D) $14 million.
E) Insufficient information to know.