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there all one question, but need to explain the colored curves. surpluses 0% deficits year 1 year 2 Refer to the image above. The green

there all one question, but need to explain the colored curves. image text in transcribed
image text in transcribed
image text in transcribed
surpluses 0% deficits year 1 year 2 Refer to the image above. The green curve is the: Answer: Refer to the image above. The purple curve is the: Answer: Refer to the image above. The red curve is the Answer: Refer to the figure above. What is shown by the difference between the red curve and the green curve? Answer: Refer to the figure above. Why does the red curve show a smoother business cycle than the purple curve? Because: Answer: Refer to the figure above. Under what conditions could you say that the fiscal policy stance in year 1 was pro-cyclical

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