Refer to the information provided in Figure 24.5 below to answer the question(s) that follow.
Figure 24.5
-Refer to Figure 24.5. If the economy is in equilibrium and the government decreases spending by $200 billion, equilibrium aggregate output decreases to $________ billion.
A) 1,400
B) 1,200
C) 1,000
D) 800
Correct Answer:
Verified
Q163: Refer to the information provided in Figure
Q164: Taxes are reduced by $15 billion and
Q165: Refer to the information provided in Figure
Q166: Refer to the information provided in Figure
Q167: Refer to the information provided in Figure
Q170: Refer to the information provided in Figure
Q172: Refer to the information provided in Figure
Q172: If the tax multiplier is -9 and
Q177: Taxes are reduced by $70 billion and
Q179: If the MPS is 0.5, the tax
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