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The Diagram Below Shows Two Budget Deficit Functions for a Hypothetical

Question 21

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The diagram below shows two budget deficit functions for a hypothetical economy.
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 level of potential output were 300, the cyclically adjusted budget deficit would be A) $14 million. B) $2 million. C) negative. D) positive. E) -- insufficient information to know. FIGURE 32- 2
-Refer to Figure 32- 2. Initially, suppose the economy is at point A. If the level of potential output were 300, the cyclically adjusted budget deficit would be


A) $14 million.
B) $2 million.
C) negative.
D) positive.
E) -- insufficient information to know.

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