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Solve it plzzz 4) For an economy operating in a state of short-run equilibrium, the government needs extra funds to nance its excessive expenditures. For

Solve it plzzz

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4) For an economy operating in a state of short-run equilibrium, the government needs extra funds to nance its excessive expenditures. For this reason, it decided that it must achieve a budget surplus to be able to nance its excessive expenditures, and it succeeded to achieve a surplus in its budget. a. Explain what is meant by a Budget Surplus and when does it occur in an economy? What is the effect of such a decision (achieving a budget surplus) on the market of Loanable Funds? Explain your answer in words and graph. (i ' \"' b. Explain the effect of this decision on the market economy using ADAS model. Draw graph of ADAS and explain effect in words. k' ' ""' c. Is \"achieving a budget surplus" a good decision to help this government in nancing its excessive expenditures? Ifyes, explain why and how this is a good decision and if no, explain what could you suggest as a better alternative decision or policy to be followed by the goverrunent to achieve this objective? You may explain your answer in words and graph. .r

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