-Refer to the above figure. A budget deficit occurs when real national income is
A)Y₁.
B)Y₂.
C)Y₃.
D)None of the above: cannot be determined given the information.

Name: -Refer to the above figure. A budget deficit occurs when real national income is A)Y₁. B)Y₂. C)Y₃. D)None of the above: cannot be determined given the information.
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Question

-Refer to the above figure. A budget deficit occurs when real national income is
A)Y₁. 
B)Y₂. 
C)Y₃. 
D)None of the above: cannot be determined given the information.

Quizplus · Accepted Answer

A budget deficit occurs when real national income is less than the full-employment level of output. In the figure, this occurs at Y₁.

-Refer to the Above Figure