Refer to the information provided in Table below to answer the question that follow. All Figures in Billions of Dollars Consumption Spending Planned Investment Purchases 150 150 150 150 150 150 150 Output Government Spending 200 200 200 200 200 200 200 (Income) Net Taxes (C=100+0.9Yd) Savings 150 170 190 210 230 250 270 !! 2,600 2,800 3,000 3,200 3,400 3,600 3,800 100 100 100 100 100 100 100 2,350 2,530 2,710 2,890 3,070 3,250 3,430 Refer to Table The economy is at the equilibrium level of output. If government spending increases by $200 billion, the new equilibrium level of output is select one: a. $4,400 billion. b. $5,600 billion. C. $4,000 billion. O d. $4,600 billion.
Refer to the information provided in Table below to answer the question that follow. All Figures in Billions of Dollars Consumption Spending Planned Investment Purchases 150 150 150 150 150 150 150 Output Government Spending 200 200 200 200 200 200 200 (Income) Net Taxes (C=100+0.9Yd) Savings 150 170 190 210 230 250 270 !! 2,600 2,800 3,000 3,200 3,400 3,600 3,800 100 100 100 100 100 100 100 2,350 2,530 2,710 2,890 3,070 3,250 3,430 Refer to Table The economy is at the equilibrium level of output. If government spending increases by $200 billion, the new equilibrium level of output is select one: a. $4,400 billion. b. $5,600 billion. C. $4,000 billion. O d. $4,600 billion.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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
Transcribed Image Text:Refer to the information provided in Table below to answer the question that follow.
All Figures in Billions of Dollars
Consumption
Spending
Output
(Income) Net Taxes (C 100+ 0.9Yd) Savings
2,600
2,800
3,000
3,200
3,400
3,600
3,800
100
100
100
100
100
100
100
2,350
2,530
2,710
2,890
3,070
3,250
3,430
150
170
190
210
230
250
270
Planned
Investment
Purchases
150
150
150
150
150
150
150
Government
Spending
200
200
200
200
200
200
200
Refer to Table The economy is at the equilibrium level of output. If
government spending increases by $200 billion, the new equilibrium level of
output is
Select one:
a. $4,400 billion.
b. $5,600 billion.
C. $4,000 billion.
loo Ed. $4,600 billion.
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