-Refer to the Graph Above to Answer This Question

question 49

Multiple Choice

-Refer to the graph above to answer this question.What does this graph indicate?

• A)That government spending is autonomous of real GDP and that net tax revenue is a function of real GDP.
• B)That government spending is a function of real GDP and that net tax revenue is autonomous of real GDP.
• C)That budget surpluses are possible only at lower levels of real GDP.
• D)That budget deficits are possible only at higher levels of real GDP.
• E)That a balanced budget can occur at any level of real GDP except Y2.

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Definitions:

Soybeans

A species of legume native to East Asia, widely grown for its edible bean which has numerous uses.

Opportunity Cost

The value of the best alternative foregone when a decision is made to choose one option over others.

Soybeans

A leguminous plant from East Asia, extensively cultivated for its consumable beans that serve in a multitude of edible goods and as a source for oil.

Alfalfa

A perennial flowering plant widely cultivated as fodder for livestock due to its high nutrient content.