Refer to the information provided in Table 9.4 below to answer the questions that follow.
Table 9.4
All Figures in Billions of Dollars

-Refer to Table 9.4.The economy is at the equilibrium level of output.If government spending decreases by $100 billion,the new equilibrium level of output is

Question

Refer to the information provided in Table 9.4 below to answer the questions that follow.
Table 9.4
All Figures in Billions of Dollars
 
-Refer to Table 9.4.The economy is at the equilibrium level of output.If government spending decreases by $100 billion,the new equilibrium level of output is

Quizplus · Accepted Answer

According to the table, at the equilibrium level of output, when aggregate expenditure equals output, the total expenditure (GDP) is $2,500 billion. If government spending decreases by $100 billion, the new aggregate expenditure will be $2,400 billion, which becomes the new equilibrium level of output. Therefore, the correct answer is B.

Refer to the Information Provided in Table 9