Answer plzz... The figure to the right shows a pair of budget deficit functions. Assume that initially the budget deficit function is(G+iD-T) The economy, initially at Y₁, then experiences a recession. The government attempts to reduce thesize of the recession with an expansionary fiscal policy, and the economy ends up at an output level of Y₂ Theeffect on the government budget deficit would be best shown asO A. the change from 0 to D1.B. the change from 0 to D2.OC. the change from 0 to D3.O D. the change from D1 to D2.-O E. the change from D1 to D3.Deficit/Surplus in billions of dollars)500400-300200-1000-100-200--300-D1The Budget Deficit Function300Y₂Y₁5009001200(G+iD-T),(G+iD-T)Real GDP in bilions of dollars)Qo✔

A budget deficit occurs when a government's expenditures exceed its revenues in a given period. The…

e figure to the right shows a pair of budget deficit functions. Assume that initially the budget deficit function is +iD-T) The economy, initially at Y,, then experiences a recession. The government attempts to reduce the me of the recession with an expansionary fiscal policy, and the economy ends up at an output level of Y₂ The ect on the government budget deficit would be best shown as A. the change from 0 to D1. OB. the change from 0 to D2. OC. the change from 0 to D3. OD. the change from D1 to D2 OE. the change from D1 to D3. Deficit Surplus in billions of dollars) 500 400- 300- 200- 100+ 04 -100- -200 -300-4 D1 The Budget Deficit Function 300 600 200 1200 (G+iD-T), (G+iD-To Real GDP (in billions of dollars) Q o S

e figure to the right shows a pair of budget deficit functions. Assume that initially the budget deficit function is +iD-T) The economy, initially at Y,, then experiences a recession. The government attempts to reduce the me of the recession with an expansionary fiscal policy, and the economy ends up at an output level of Y₂ The ect on the government budget deficit would be best shown as A. the change from 0 to D1. OB. the change from 0 to D2. OC. the change from 0 to D3. OD. the change from D1 to D2 OE. the change from D1 to D3. Deficit Surplus in billions of dollars) 500 400- 300- 200- 100+ 04 -100- -200 -300-4 D1 The Budget Deficit Function 300 600 200 1200 (G+iD-T), (G+iD-To Real GDP (in billions of dollars) Q o S

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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help please answer in text form with proper workings and explanation for each and every part and steps with concept and introduction no AI no copy paste remember answer must be in proper format with all working