-Refer to the Figure Above to Answer This Question

Multiple Choice

-Refer to the figure above to answer this question.Which of the following statements is verified by the graph?

A) A budget surplus exists if government spending is G₁ and real GDP is Y₁.
B) A budget deficit exists if government spending is G₁ and real GDP is Y₁.
C) If government spending was reduced from G₁ to G₂,the budget surplus at Y2 would decrease.
D) NTR is a function of the level of government spending.