The data below is the consumption schedule in an economy. All figures are in billions of dollars. Refer to the above table. If gross investment is $34 billion, net exports are zero, and there is a lump-sum tax of $30 billion at all levels of GDP, then the after-tax equilibrium level of GDP will be:
A) $490 billion
B) $540 billion
C) $590 billion
D) $640 billion

Question

The data below is the consumption schedule in an economy. All figures are in billions of dollars.  Refer to the above table. If gross investment is $34 billion, net exports are zero, and there is a lump-sum tax of $30 billion at all levels of GDP, then the after-tax equilibrium level of GDP will be:
A) $490 billion 
B) $540 billion 
C) $590 billion 
D) $640 billion

Quizplus · Accepted Answer

The Answer of The data below is the consumption schedule in an economy. All figures are in billions of dollars.  Refer to the above table. If gross investment is $34 billion, net exports are zero, and there is a lump-sum tax of $30 billion at all levels of GDP, then the after-tax equilibrium level of GDP will be:
A) $490 billion 
B) $540 billion 
C) $590 billion 
D) $640 billion

The Data Below Is the Consumption Schedule in an Economy