If C = 2000

question 12

Multiple Choice

If C = 2000 + .9YD,what decrease in taxes must occur for equilibrium output to increase by 1000?

• A)111
• B)100
• C)1000
• D)500

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Definitions:

Hourly Rate

The amount of money paid for one hour of work.

Equivalent

An item that holds the same worth, purpose, or significance as another within a given context.

Pay

The total money received by an employee from an employer as compensation for employment, including all bonuses and allowances.

Purchasing Power

The capability of a currency to buy goods or services, expressed as the quantity one unit can acquire.