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