Refer to the information provided in Figure 9.5 below to answer the questions that follow.
Figure 9.5
-Refer to Figure 9.5. If the economy is in equilibrium and the government decreases spending by $200 billion, equilibrium aggregate output decreases to $________ billion.
A) 1,400
B) 1,200
C) 1,000
D) 800
Correct Answer:
Verified
Q163: Refer to the information provided in Figure
Q164: Taxes are reduced by $15 billion and
Q165: A decrease in lump-sum taxes will
A) make
Q166: Refer to the information provided in Figure
Q167: If the MPC is 0.7, the tax
Q169: Refer to the information provided in Figure
Q170: Refer to the information provided in Figure
Q171: The tax multiplier is
A) the ratio of
Q172: If the tax multiplier is -9 and
Q173: Refer to the information provided in Figure
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