Refer to the information provided in Table 9.7 below to answer the questions that follow.
Table 9.7
All Numbers are in $ Million
-Refer to Table 9.7. Suppose the economy is in equilibrium and the government increases spending by $100 million, the new equilibrium output is $________ million

Question

Refer to the information provided in Table 9.7 below to answer the questions that follow.
Table 9.7
All Numbers are in $ Million 
-Refer to Table 9.7. Suppose the economy is in equilibrium and the government increases spending by $100 million, the new equilibrium output is $________ million

Quizplus · Accepted Answer

The increase in government spending will shift the aggregate demand curve to the right, increasing the equilibrium output. Assuming a simple multiplier effect, the new equilibrium output will be $1,900 million.

Refer to the Information Provided in Table 9