The Following Schedule Contains Data for a Private Closed Economy

question 179

Multiple Choice

The following schedule contains data for a private closed economy.All figures are in billions.Assume that gross investment is $10 billion. Refer to the above data.If gross investment remains at $10 at all levels of GDP, the after-tax equilibrium level of GDP will be:

• A)$220
• B)$190
• C)$180
• D)$160

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Definitions:

Food Stamps

A government-provided voucher program, now commonly known as the Supplemental Nutrition Assistance Program (SNAP), designed to help low-income individuals and families afford food.

Contributory

Relating to or involving contributions; in the context of social security or insurance, it refers to systems where benefits are contingent upon the beneficiary's prior contributions.

Noncontributory

A social welfare program that does not require participants to have contributed to a specific fund in order to receive benefits from it.

Welfare

Government programs designed to assist individuals and families in meeting their basic needs, such as food, housing, and healthcare, often aimed at those living in poverty.