G Spending and NTR Budget Surplus Budget Deficit Y₁ V1 V2 V2 Y3 V3 NTR Real GDP BL Real GDP In the following graph, NTR is net tax revenue, G is government spending on goods and services, BL is budget line. Which of the following is true? A balanced budget would occur at income level Y1 A balanced budget would occur at income level Y2 A balanced budget could occur at income levels Y1, Y2 or Y3 The existence of a balanced budget cannot be determined because no inflation on tex revenues is given
G Spending and NTR Budget Surplus Budget Deficit Y₁ V1 V2 V2 Y3 V3 NTR Real GDP BL Real GDP In the following graph, NTR is net tax revenue, G is government spending on goods and services, BL is budget line. Which of the following is true? A balanced budget would occur at income level Y1 A balanced budget would occur at income level Y2 A balanced budget could occur at income levels Y1, Y2 or Y3 The existence of a balanced budget cannot be determined because no inflation on tex revenues is given
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![G Spending and NTR
Budget Deficit Budget Surplus
Y1
V1
.
I
I
Y2
V2
je
I
I
Y3
I
V3
G
NTR
Real GDP
BL
Real GDP
In the following graph, NTR is net tax revenue, G is government spending on goods
and services, BL is budget line. Which of the following is true?
A balanced budget would occur at income level Y1
A balanced budget would occur at income level Y2
A balanced budget could occur at income levels Y1, Y2 or Y3
The existence of a balanced budget cannot be determined because no inflation on
tex revenues is given](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F40b9d9eb-abdf-4270-a814-3f07769c8106%2Fd4a5e9ae-be95-40d7-8144-cd272b593ab1%2F6lz3isk_processed.png&w=3840&q=75)
Transcribed Image Text:G Spending and NTR
Budget Deficit Budget Surplus
Y1
V1
.
I
I
Y2
V2
je
I
I
Y3
I
V3
G
NTR
Real GDP
BL
Real GDP
In the following graph, NTR is net tax revenue, G is government spending on goods
and services, BL is budget line. Which of the following is true?
A balanced budget would occur at income level Y1
A balanced budget would occur at income level Y2
A balanced budget could occur at income levels Y1, Y2 or Y3
The existence of a balanced budget cannot be determined because no inflation on
tex revenues is given
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