Figure 19-4 -Refer to Figure 19-4. Suppose That the Government Goes from Government

question 249

Multiple Choice

Figure 19-4
-Refer to Figure 19-4. Suppose that the government goes from a budget surplus to a budget deficit. The effects of the change could be illustrated by

• A)shifting the demand curve in panel a to the right and the demand curve in panel c to the left.
• B)shifting the demand curve in panel a to the left and the supply curve in panel c to the left.
• C)shifting the supply curve in panel a to the right and the demand curve in panel c to the right.
• D)shifting the supply curve in panel a to the left and the supply curve in panel c to the left.

---

Definitions:

Trades

The act of buying, selling, or exchanging financial instruments, commodities, or other tangible or intangible items between parties.

Dividends

Payments made by a corporation to its shareholders, often derived from the company's profits, and distributed on a regular basis.

Earnings

The amount of profit that a company produces over a specific time period, typically reported as net income.

Mature Firms

Mature firms are companies that have reached a phase of growth where earnings, sales, and cash flows are relatively stable and predictable.