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In the figure to the right, explain why a budget naturally tends to arise at a real GDP level such as , to the of

In the figure to the right, explain why a budget naturally tends to arise at a real GDP level such as , to the of . Part 2 As real GDP , real tax revenues decline rise and benefit payments in the form of unemployment compensation and income transfer payments rise decline . At points to the of such as , the sum of benefits paid out is less than exceeds tax revenues, and a budget results

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