Refer to the Information Provided in Figure 9

question 199

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 decreases spending by $200 billion, equilibrium aggregate output decreases to $________ billion.

• A) 1,400
• B) 1,200
• C) 1,000
• D) 800