Use the figure below to answer the following questions.
Figure 13.3.1
-Refer to Figure 13.3.1, which shows the outlays and revenues for the government of Pianoland.The budget is balanced when real GDP equals
A)$750 billion.
B)$700 billion.
C)$550 billion.
D)$650 billion.
E)$600 billion.

Question

Use the figure below to answer the following questions.
  Figure 13.3.1
-Refer to Figure 13.3.1, which shows the outlays and revenues for the government of Pianoland.The budget is balanced when real GDP equals
A)$750 billion. 
B)$700 billion. 
C)$550 billion. 
D)$650 billion. 
E)$600 billion.

Quizplus · Accepted Answer

The budget is balanced when the outlays and revenues intersect, which occurs at point A on the graph. At point A, real GDP is $650 billion. Therefore, the correct answer is D) $650 billion.

Use the Figure Below to Answer the Following Questions