The following information is for a closed economy: Refer to the above information.If in addition to spending $80 billion at each level of GDP, government imposes a lump-sum tax of $100:
A)equilibrium GDP will now be $350.
B)equilibrium GDP will now be $400.
C)equilibrium GDP will now be $300.
D)the equilibrium GDP cannot be determined.

Question

The following information is for a closed economy:  Refer to the above information.If in addition to spending $80 billion at each level of GDP, government imposes a lump-sum tax of $100:
A)equilibrium GDP will now be $350. 
B)equilibrium GDP will now be $400. 
C)equilibrium GDP will now be $300. 
D)the equilibrium GDP cannot be determined.

Quizplus · Accepted Answer

The Answer of The following information is for a closed economy:  Refer to the above information.If in addition to spending $80 billion at each level of GDP, government imposes a lump-sum tax of $100:
A)equilibrium GDP will now be $350. 
B)equilibrium GDP will now be $400. 
C)equilibrium GDP will now be $300. 
D)the equilibrium GDP cannot be determined.

The Following Information Is for a Closed Economy: Refer