Consider a simple macro model with demand-determined output.Suppose the level of exports decreases unexpectedly by $6 billion.If the government wants to restore the initial equilibrium level of output it could,all other things equal,
A)increase its purchases by more than $6 billion.
B)increase its net tax revenues by $6 billion.
C)increase its net tax revenues by less than $6 billion.
D)increase its purchases by $6 billion.
E)decrease its purchases by $6 billion.

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The Answer of Consider a simple macro model with demand-determined output.Suppose the level of exports decreases unexpectedly by $6 billion.If the government wants to restore the initial equilibrium level of output it could,all other things equal,
A)increase its purchases by more than $6 billion.
B)increase its net tax revenues by $6 billion.
C)increase its net tax revenues by less than $6 billion.
D)increase its purchases by $6 billion.
E)decrease its purchases by $6 billion.

Consider a Simple Macro Model with Demand-Determined Output