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 B0.Real GDP (Y)is $100 million.If the government implements a fiscal policy that causes the budget deficit function to shift to B1,we can conclude that the policy was ________ and the structural deficit will be ________ than previously.

Question

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 B0.Real GDP (Y)is $100 million.If the government implements a fiscal policy that causes the budget deficit function to shift to B1,we can conclude that the policy was ________ and the structural deficit will be ________ than previously.

Quizplus · Accepted Answer

The Answer of 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 B0.Real GDP (Y)is $100 million.If the government implements a fiscal policy that causes the budget deficit function to shift to B1,we can conclude that the policy was ________ and the structural deficit will be ________ than previously.

The Diagram Below Shows Two Budget Deficit Functions for a Hypothetical