The Canadian federal budget moved from a surplus of \(\$ 9 .6\) billion in the 200 7-2008 fiscal year to a deficit of \(\$ 5 .8\) billion the next year, and a large deficit of \(\$ 55 .6\) billion in 200 9-2010.

a. Suppose real GDP was at potential in each of the first two years. What can you conclude about the cause of the change in the budget deficit? Show this change in a diagram of the budget deficit function.

b. Suppose from 200 8-2009 to 200 9-2010, two things happened: real GDP fell and the government implemented an expansionary fiscal policy (both of which were true). Show these two separate events in a diagram of the budget deficit function.