Figure 32-5 Refer to This Diagram of the Open-Economy Macroeconomic Model to Model

question 64

Multiple Choice

Figure 32-5
Refer to this diagram of the open-economy macroeconomic model to answer the questions below.

-Refer to Figure 32-4.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.

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