Assume that the consumption function is given by C = 200 + 0.7(Y - T), the tax function is given by T = 100 + 0.2Y, and Y = 50K^0.5L^0.5, where K = 100. If L increases from 100 to 144, then consumption increases by: A)560. B)840. C)1,120. D)2,120.

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The Answer of Assume that the consumption function is given by C = 200 + 0.7(Y - T), the tax function is given by T = 100 + 0.2Y, and Y = 50K^0.5L^0.5, where K = 100. If L increases from 100 to 144, then consumption increases by: A)560. B)840. C)1,120. D)2,120.

Assume That the Consumption Function Is Given by C =