5. Automatic adjustments to the government budgetThe following table provides some information on government spending (G) and tax revenues (T) at different levels of real GDP in a hypotheticaleconomy.Note: Throughout this problem you can assume, for simplicity, that government transfers are zero.Real GDP(Billions of dollars)260300340Government Spending (G)(Billions of dollars)505050Tax Revenues (T)(Billions of dollars)485052Use the blue line (circle symbols) to plot the government spending schedule presented in the table. Then use the orange line (square symbols) to plotthe economy's tax revenues schedule. GOVERNMENT SPENDING AND TAXES (Billions of dollars)6058565452504846444240200 220240260 280 300 320 340 360 380 400REAL GDP (Billions of dollars)TofDeficitsSurpluses(?Consider the government spending and tax revenues schedules you plotted. When real GDP is $380 billion, the government runs abudgetUse the purple triangle (diamond symbols) to shade the region between the tax revenues schedule and the government spending schedule in whichthe levels of real GDP are associated with government budget deficits. Then use the green triangle (triangle symbols) to shade the region between thetwo schedules in which the levels of real GDP are associated with budget surpluses.

Budget Deficit = Government expenditure - Tax Revenue

5. Automatic adjustments to the government budget The following table provides some information on government spending (G) and tax revenues (T) at different levels of real GDP in a hypothetical economy. Note: Throughout this problem you can assume, for simplicity, that government transfers are zero. Real GDP (Billions of dollars) 260 300 340 Government Spending (G) (Billions of dollars) 50 50 50 Tax Revenues (T) (Billions of dollars) 48 50 52 Use the blue line (circle symbols) to plot the government spending schedule presented in the table. Then use the orange line (square symbols) to plot the economy's tax revenues schedule.