The Following Information Is for a Closed Economy Refer to the Information

question 141

Multiple Choice

The following information is for a closed economy: $\begin{array}{c}\begin{array}{c}\underline{\text { GDP }} \\\$ 100 \\200 \\300 \\400 \\500 \\600 \\700\end{array}\begin{array}{c}\underline{\text { C }}\\ \$ 100 \\160 \\220 \\280 \\340 \\400 \\460 \end{array}\begin{array}{c}\underline{\text { S}} \\\$ 0 \\40 \\80 \\120 \\160 \\200 \\240 \end{array}\begin{array}{c}I_{g} \\\hline \$ 80 \\80 \\80 \\80 \\80 \\80 \\80 \end{array}\end{array}$
Refer to the information.If government spends $80 billion at each level of GDP,and imposes a lump-sum tax of $100:

• A) equilibrium GDP will now be $350.
• B) equilibrium GDP will now be $400.
• C) equilibrium GDP will now be $300.
• D) the equilibrium GDP cannot be determined.

---

Definitions:

Obstacles To Success

The various barriers or challenges that individuals or groups face which hinder their ability to achieve personal goals or societal progress.

Black Middle Class

A socio-economic segment of the African American population characterized by moderate to high levels of education, income, and professional achievement.

Experience Racism

Involves personal encounters with racial prejudice, discrimination, and systemic inequities based on race or ethnicity.

Segregation

The spatial and social separation of racial and ethnic groups.