Refer to the Graph to Answer This Question

Multiple Choice

Refer to the graph to answer this question.Which of the following is verified by the graph?

A) That a budget surplus exists if government spending is G₁ and real GDP is Y₁.
B) That a budget deficit exists if government spending is G₂ and real GDP is Y₁.
C) The reduction in government spending from G₁ to G₂ would produce real GDP equilibrium at Y₁.
D) If government spending was reduced from G₁ to G₂ the budget surplus at Y2 would disappear if real GDP remained at Y₃.
E) That the budget is balanced if government spending is G₁ and real GDP is Y₃.