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