The following information is for a closed economy: Refer to the above information.If government now spends $80 billion at each level of GDP and taxes remain at zero, the equilibrium GDP:
A)will rise to $700.
B)will rise to $600.
C)will rise to $500.
D)may either rise or fall.

Question

The following information is for a closed economy:  Refer to the above information.If government now spends $80 billion at each level of GDP and taxes remain at zero, the equilibrium GDP:
A)will rise to $700. 
B)will rise to $600. 
C)will rise to $500. 
D)may either rise or fall.

Quizplus · Accepted Answer

The Answer of The following information is for a closed economy:  Refer to the above information.If government now spends $80 billion at each level of GDP and taxes remain at zero, the equilibrium GDP:
A)will rise to $700. 
B)will rise to $600. 
C)will rise to $500. 
D)may either rise or fall.

The Following Information Is for a Closed Economy: Refer