All Figures in the Table Below Are in Billions of Dollars

question 53

Multiple Choice

All figures in the table below are in billions of dollars. Refer to the above data. Gross investment is $8 billion, net exports are $4 billion, and government collects a lump-sum tax of $30 billion and spends $30 billion. Assume all taxes are personal taxes and that government spending does not entail shifts in the consumption and investment schedules. The equilibrium GDP will be:

• A) $280 billion
• B) $290 billion
• C) $300 billion
• D) $310 billion

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Definitions:

Conservative Laws

Legislation that adheres to traditional values and viewpoints, usually emphasizing restraint in social and political change and preserving existing conditions.

Socially Organized

The arrangement and cooperation of individuals and groups in societies that results in a structured and functioning community.

Interstate Warfare

Conflict or war that takes place between two or more sovereign states.

World Power

A nation or state that has significant influence and authority on a global scale, often through economic, military, or political means.