-Refer to the Graph Above to Answer This Question

Multiple Choice

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

A) That net tax revenues,government spending and the government's budget all depend on the level of real GDP.
B) That the state of the government's budget depends on the level of real GDP as well as on tax rates and its own spending.
C) That the level of real GDP depends on the slope of the budget line.
D) That real GDP level Y2 is equilibrium GDP.
E) That real GDP level Y2 is both equilibrium GDP and a balanced budget.