Refer to the above diagram where T is tax revenues and G is government expenditures.All figures are in billions of dollars.If the full-employment and actual GDP are each $400 billion, government can balance its budget by:
A)increasing T by $40 billion.
B)reducing G by $20 billion.
C)reducing T by $20 billion.
D)increasing T by $10 billion and reducing G by $20 billion.

Question

Refer to the above diagram where T is tax revenues and G is government expenditures.All figures are in billions of dollars.If the full-employment and actual GDP are each $400 billion, government can balance its budget by:
A)increasing T by $40 billion. 
B)reducing G by $20 billion. 
C)reducing T by $20 billion. 
D)increasing T by $10 billion and reducing G by $20 billion.

Quizplus · Accepted Answer

The Answer of  Refer to the above diagram where T is tax revenues and G is government expenditures.All figures are in billions of dollars.If the full-employment and actual GDP are each $400 billion, government can balance its budget by:
A)increasing T by $40 billion. 
B)reducing G by $20 billion. 
C)reducing T by $20 billion. 
D)increasing T by $10 billion and reducing G by $20 billion.

Refer to the Above Diagram Where T Is Tax Revenues