Figure 16-1
-In Figure 16-1,there are four levels of income.G is government expenditures and TT is taxes less transfers.At which level of income does the official budget produce a surplus?

Question

Figure 16-1 
-In Figure 16-1,there are four levels of income.G is government expenditures and TT is taxes less transfers.At which level of income does the official budget produce a surplus?

Quizplus · Accepted Answer

A budget surplus occurs when taxes less transfers (TT) exceed government expenditures (G). At income level Y₄, TT is greater than G, resulting in a surplus.

Figure 16-1 -In Figure 16-1,there Are Four Levels of Income.G Is Government