Refer to the above diagram where T is tax revenues and G is government expenditures. All figures are in

billions of dollars. If the full-employment and actual GDP are each $400 billion, government can balance

its budget by:

A. increasing T by $40 billion.

B. reducing G by $20 billion.

C. reducing T by $20 billion.

D. increasing T by $10 billion and reducing G by $20 billion