Use the Following Situation to Answer the Question : Situation

question 74

Multiple Choice

Use the following Situation to answer the question : situation 20-2 Assume a closed economy. Suppose that autonomous consumption equals $400, planned investment equals $500, government expenditure equals $200, net taxes equals $50, and the mpc equals 0.9.
-Using the information in situation 20-2,if government increases their spending by $50 and increases net taxes by 50,then equilibrium aggregate output will change by

• A)-$100.
• B)-$50.
• C)$50.
• D)$100.

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Definitions:

Explosive

An explosive is a reactive substance that contains a great amount of potential energy, which can produce an explosion if released suddenly, typically through a rapid expansion of gas.

Financial Loss

The negative impact experienced when expenses exceed revenues, or when assets lose value, affecting an individual's or entity's overall financial health.

Volenti Non Fit Injuria

A defence in torts based on the plaintiff’s voluntarily assuming a clear legal risk.

Physical Risk

Refers to the likelihood of bodily harm or injury in a given environment or activity.