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:

Public Agencies

Government departments or organizations that operate within the public sector, providing services to the nation or a community.

Paradox Of Voting

A situation where the cost of voting (time, effort, etc.) outweighs the apparent individual benefit, questioning why rational individuals vote.

Private Sector

The part of an economy that is owned and operated by private individuals and businesses, as opposed to the government.

Public Sector

The part of the economy that is controlled by the government, including various public services and enterprises.