GDP C S Ig $100 $100 $0 $80
200 160 40 80
300 220 80 80
400 280 120 80
500 340 160 80
600 400 200 80
700 460 240 80
Refer to the accompanying information for a closed economy.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.
Correct Answer:
Verified
Q75: Q76: Q77: If a $20 billion increase in government Q78: Which of the following would increase GDP Q79: Ca = 25 + 0.75 (Y - Q81: If the MPC in an economy is Q82: Assume the current equilibrium level of income Q83: The multiplier effect demonstrates that Q84: If the MPC is 0.50 and the Q85: If MPC = 0.5, a simultaneous increase
A)equal increases in
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