graph above to answer this question. Suppose this economy is initially at Y1 with budget line BL1. If counter-cyclical fiscal policy is used which of the following is correct? Question 1 options: A) Aggregate demand would increase from AD1 to AD2 and the budget surplus would increase from ab to cd. B) Aggregate demand would increase from AD1 to AD2 and the budget deficit would increase from ab to cd. C) Aggregate demand would decrease from AD2 to AD1 and the budget surplus would decrease from cd to ab. D) Aggregate demand would decrease from AD2 to AD1 and the budget deficit would decrease from cd to ab. E) Aggregate demand would decrease from AD2 to AD1 and the budget surplus would increase from cd to ab