The data below is the consumption schedule in an economy. All figures are in billions of dollars. Refer to the above table. Given the level of investment at $34 billion, zero net exports, and a lump-sum tax of $30 billion, the addition of government expenditures of $20 billion at each level of GDP will result in an equilibrium GDP of:
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. Given the level of investment at $34 billion, zero net exports, and a lump-sum tax of $30 billion, the addition of government expenditures of $20 billion at each level of GDP will result in an equilibrium GDP of:
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. Given the level of investment at $34 billion, zero net exports, and a lump-sum tax of $30 billion, the addition of government expenditures of $20 billion at each level of GDP will result in an equilibrium GDP of:
A) $490 billion 
B) $540 billion 
C) $590 billion 
D) $640 billion

The Data Below Is the Consumption Schedule in an Economy