Figure 5-1
-Employing the government budget diagram shown in the figure above, assume that the economy is initially in equilibrium at point A. The movement A to D represents

Question

Figure 5-1 
-Employing the government budget diagram shown in the figure above, assume that the economy is initially in equilibrium at point A. The movement A to D represents

Quizplus · Accepted Answer

The movement from point A to D on a government budget diagram typically indicates a shift towards a budget surplus, which is achieved by decreasing government spending and/or increasing taxes.

Figure 5-1 -Employing the Government Budget Diagram Shown in the Figure Above