Graph 32-1 -In Graph 32-1, an Increase in the Government Budget Deficit

question 40

Multiple Choice

Graph 32-1

-In Graph 32-1, an increase in the government budget deficit causes the equilibrium in the economy to move from:

• A) A to B in panel (a) and from E₁ to E₂ in panel (c)
• B) B to A in panel (a) and from E₂ to E₁ in panel (c)
• C) A to B in panel (a) and from E₂ to E₁ in panel (c)
• D) B to A in panel (a) and from E₁ to E₂ in panel (c)

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