The above chart shows two different tax regimes labelled T₁ and T₂ (T₂ indicates a decreased tax rate at all levels of GDP).

a)When T₁ is the tax rate ...in year 3...what is the cyclically-adjusted deficit or surplus (in billions of dollars)?

b)When T₂ is the tax rate ...in year 3...what is the cyclically-adjusted deficit or surplus (in billions of dollars)?

c)When T₁ is the tax rate ...in year 3...what is the actual deficit or surplus (in billions of dollars)?

d)When T₂ is the tax rate ...in year 3...what is the actual deficit or surplus ? (in billions of dollars)

e)When T₂ is the tax rate ...in year 4...what is the actual deficit or surplus (in billions of dollars)?

T1 e d tax revenues, T (billions) Government expenditures, G, and $600 G 550 h 500 450 GDP GDP Real domestic output, GDP (year 4) (year 3)