On the graph that follows, shift one of the curves to illustrate the dominant impact of the income tax cut according to supply-side economists. (? ) Supply-side Effects AS AD AS PRICE LEVEL (CPD) AD REAL GDP (Billions of dollars) Use the dropdown menus to fill in the following table to complete the causation chains for the Keynesian effects and supply-side effects of the income tax cut. Supply-side Policy Keynesian Policy 1. Income tax cut 1. Income tax cut 2. 2. 3 aggregate supply 3. aggregate demand 4. Real GDP and the price level 4. Real GDP and the price levelSuppose that the following curve shows tax revenues at various tax rates in a hypothetical economy. (? 20 XD TAX REVENUE (Billions of dollars) X c 100 INCOME TAX RATE (Percent) Complete the following table by indicating what the government should do in order to maximize tax revenues if it is operating at each of the points listed. Point Raise Tax Rates Lower Tax Rates Keep Current Tax Rates A O O O C O O O D O O OSelect the correct term for each of the following definitions in the table. Definitions Terms The total amount owed by the federal government to owners of government securities National debt minus all government interagency borrowing The portion of the national debt owed to foreign citizens An increase in private-sector spending as a result of federal budget deficits financed by U.S. Treasury borrowing The portion of the national debt owed to a nation's own citizensThe following table lists federal expenditures, revenues, and GDP for the U.S. economy during several years. All numbers are in billions of dollars. Revenues Expenditures GDF Year (Billions of dollars) ( Billions of dollars) ( Billions of dollars) 1929 3.9 3.1 103.6 1948 41.6 29.8 269.2 1967 148.8 157.5 832.6 1986 769.2 990.4 4,462.8 2005 2,153.9 2,472.2 12,421.9 Plot the data for revenues and expenditures as a percentage of GDP on the following graph, rounded to the nearest percent. Use the orange points (square symbol) for expenditures and the green points (triangle symbol) for revenues. Line segments will automatically connect the points. (? ) 25 Expenditures 20 15 Revenues FEDERAL EXPENDITURES AND REVENUES (Percent of GDP) 10 0 1920 1948 1967 1988 2005 YEARIn which years was the government's budget in deficit? Check all that apply. O 1929 O 1948 1967 1986 0 2005 In 1967, the national debt by