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.

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