Table 101 (All Values Are in Billions of Dollars)
-Refer to Table

question 24

Multiple Choice

Table 10.1
$$\begin{array} { | l | l | } \hline \text { Consurmpticn } & C = \$ 1.0 + 0.75 \mathrm { YD } \\\hline \text { Irvestmernt } & = \$ 1.9 \\\hline \text { Goverument purchases } & = \$ 2 \\\hline \text { Net exports } & = - \$ 0.5 \\\hline \text { Taxes } & = \$ 0 \\\hline \text { Goverument trarssfer } & \\\text { gayments } & = \$ 0\end{array}$$
(all values are in billions of dollars)
-Refer to Table 10.1.Suppose that all of the information given in the table remains the same except that taxes equal $0.5 billion.If potential GDP equals $17 billion,by how much would taxes have to decrease for equilibrium GDP to equal potential GDP?

• A) $1.9 billion
• B) $0.3 billion
• C) $1.5 billion
• D) $5 billion

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Definitions:

Hypnosis

A state of focused attention, enhanced suggestibility, and vivid fantasies, often used therapeutically to reduce stress and pain.

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A general term for treating mental health problems by talking with a psychiatrist, psychologist, or other mental health provider.

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Drugs that cause profound distortions in a person’s perceptions of reality, often inducing hallucinations or altered states of consciousness.