Use the Following Situation to Answer the Question : Situation

question 41

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 taxes increase by $10,then the equilibrium aggregate output will change by

• A)-$90.
• B)-$10.
• C)$10.
• D)$90.

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Definitions:

Standardization

The process of implementing and developing technical standards to ensure consistency and compatibility in products, services, or practices.

Degradation

The process of something being destroyed or broken down, whether physically, morally, or environmentally.

Nomadic Tribes

Groups of people who move from place to place rather than settling permanently in one location, often following traditional routes.

Years Ago

A phrase used to denote a specific amount of time in the past counting backward from the current date.