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)460500540Government Spending (G)(Billions of dollars)727272Tax Revenues (T)(Billions of dollars)707274Use 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)8078767472706866646260400420440 460 480 500 520 540 560 580 600REAL GDP (Billions of dollars)GofTDeficitsSurplusesConsider the government spending and tax revenues schedules you plotted. When real GDP is $420 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.

Real GDP and Govt spending: GDP or gross domestic product is the sum of the value of all end…

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) 460 500 540 Government Spending (G) (Billions of dollars) 72 72 72 Tax Revenues (T) (Billions of dollars) 70 72 74 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.