a. Given the government spending and net tax revenues in graph A, draw the corresponding budget...

  

Transcribed Image Text:

a. Given the government spending and net tax revenues in graph A, draw the corresponding budget line, labelled BL in Graph B. Plot only the endpoints of BL in graph B. b. If government spending were to decrease by 20, draw the new government spending, G2, and budget lines, BL 2. Plot only the endpoints of G in graph A and the endpoints of BL2 in graph B. c. After the change in government spending, the budget balance at a GDP level of $500 is a [(Click to select) of $[ a. Given the government spending and net tax revenues in graph A, draw the corresponding budget line, labelled BL in Graph B. Plot only the endpoints of BL in graph B. b. If government spending were to decrease by 20, draw the new government spending, G2, and budget lines, BL 2. Plot only the endpoints of G in graph A and the endpoints of BL2 in graph B. c. After the change in government spending, the budget balance at a GDP level of $500 is a [(Click to select) of $[