that the
Figure A shows an increase in
government spending shifts Gline
up
from G, to
Go, and as a result shifts down the budget line
from
BLy ->
BLs in
Figure B.
Figure A shows an increase in
government spending shifts Gline
up
from G, to
Go, and as a result shifts down the budget line
from
BLy ->
BLs in
Figure B.