The Diagram Below Shows Two Budget Deficit Functions for a Hypothetical

question 41

Multiple Choice

The diagram below shows two budget deficit functions for a hypothetical economy.
FIGURE 32- 2
-Refer to Figure 32- 2. Initially, suppose the economy is at point A. If the government were to implement a fiscal expansion, the cyclically adjusted budget deficit would be

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

---

Definitions:

Bilirubin

A yellow compound that occurs in the normal catabolic pathway that breaks down heme in vertebrates and is excreted in bile.

Catheterization

To insert a catheter into a cavity (e.g., urinary bladder to remove urine) to remove body fluid.

Reagent Strips

Strips used in medical diagnostics to test fluids for the presence of various substances, such as glucose or protein.

Hepatitis

Inflammation of the liver.