Refer to the information provided in Table 9.8 below to answer the questions that follow.
Table 9.8
All Figures in Billions of Dollars

-Refer to Table 9.8. If taxes are reduced from $100 billion to $50 billion, the new equilibrium level of output is

Question

Refer to the information provided in Table 9.8 below to answer the questions that follow.
Table 9.8
All Figures in Billions of Dollars
 
-Refer to Table 9.8. If taxes are reduced from $100 billion to $50 billion, the new equilibrium level of output is

Quizplus · Accepted Answer

A reduction in taxes increases disposable income, leading to an increase in consumption and thus an increase in the equilibrium level of output. Without the specific details from Table 9.8, the general principle is that lower taxes typically stimulate economic activity, leading to higher output levels.

Refer to the Information Provided in Table 9