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

At Y4, the intersection of G and TT is below the 45-degree line, indicating a surplus in the official budget. At Y1, Y2, and Y3, the intersection of G and TT is above the 45-degree line, indicating a deficit in the official budget.

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