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)
Correct Answer:
Verified
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