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Figure 14-4 -Refer to Figure 14-4. Suppose That the Government Goes from the Government

Question 219

Multiple Choice

Figure 14-4

-Refer to Figure 14-4. 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.

Correct Answer: