Refer to the Information Provided in Figure 9

question 309

Multiple Choice

Refer to the information provided in Figure 9.5 below to answer the questions that follow. Figure 9.5
-Refer to Figure 9.5. If the economy is in equilibrium and the government increases spending by $100 billion and increases taxes by $100 billion, equilibrium aggregate output

• A) does not change.
• B) increases by $100 billion.
• C) increases by less than $100 billion.
• D) increases by more than $100 billion.

---

Definitions:

Manufacturing Tools

Instruments, machines, or related items used in the manufacturing process to produce goods and products.

Obsolete

Refers to products, technologies, or methods that are out-of-date or no longer in use.

Simple Interest Loan

A loan where interest is calculated only on the principal amount, not on accumulated interest.

Net Advantage To Leasing

The financial benefits that accrue to a business when leasing assets as opposed to purchasing them, often considered in terms of cost savings and tax advantages.