-Refer to the Above Diagram Where T Is Tax Revenues

Multiple Choice

-Refer to the above diagram where T is tax revenues and G is government expenditures.All figures are in billions of dollars.If the full-employment and actual GDP are each $400 billion,government can balance its budget by:

A) increasing T by $40 billion.
B) reducing G by $20 billion.
C) reducing T by $20 billion.
D) increasing T by $10 billion and reducing G by $20 billion.