Refer to the graph to answer this question.Which of the following is verified by the graph? A)That a budget surplus exists if government spending is G₁ and real GDP is Y₁. B)That a budget deficit exists if government spending is G₂ and real GDP is Y₁. C)The reduction in government spending from G₁ to G₂ would produce real GDP equilibrium at Y₁. D)If government spending was reduced from G₁ to G₂ the budget surplus at Y2 would disappear if real GDP remained at Y₃. E)That the budget is balanced if government spending is G₁ and real GDP is Y₃.

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The Answer of Refer to the graph to answer this question.Which of the following is verified by the graph? A)That a budget surplus exists if government spending is G₁ and real GDP is Y₁. B)That a budget deficit exists if government spending is G₂ and real GDP is Y₁. C)The reduction in government spending from G₁ to G₂ would produce real GDP equilibrium at Y₁. D)If government spending was reduced from G₁ to G₂ the budget surplus at Y2 would disappear if real GDP remained at Y₃. E)That the budget is balanced if government spending is G₁ and real GDP is Y₃.

Refer to the Graph to Answer This Question