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

Question

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

Quizplus · Accepted Answer

Without the specific details of Figure 32-2, such as the axes, labels, and data points, it is impossible to determine the cyclically adjusted budget deficit.

The Diagram Below Shows Two Budget Deficit Functions for a Hypothetical