Study Problem 7-7 (algo) Refer to graphs A and B, below, of government spending and net tax revenues. Graph A Graph B G1 Tools Tools 320 NTR 240 160 BL BL2 G2 240 80 Budget balance 160 0 Government spending and NTR -80 80 -160 -240 0 100 200 300 400 500 600 0 100 200 300 400 500 600 Real GDP Real GDPa. Given the government spending and net tax revenues in graph A, draw the corresponding budget line, labelled BL1 in Graph B. Plot only the endpoints of BL1 in graph B. b. If government spending were to decrease by 40, draw the new government spending, G2, and budget lines, BL2. Plot only the endpoints of 62 in graph A and the endpoints of BL2 in graph B. c. After the change in government spending, the budget balance at a GDP level of $500 is a (Click to select) c of $