Refer to the Information Provided in Table 9

question 289

Multiple Choice

Refer to the information provided in Table 9.8 below to answer the questions that follow.
Table 9.8
All Figures in Billions of Dollars

-Refer to Table 9.8. If taxes are reduced by $50 billion and government spending is reduced by $50 billion, the new equilibrium level of income

• A) is $3,550 billion.
• B) is $3,350 billion.
• C) is $1,600 billion.
• D) cannot be determined from this information.

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Definitions:

Default

Default refers to the failure to repay a loan according to the terms agreed to in the promissory note.

Federal Unemployment Tax Return

This is a tax form filed by employers to report the federal unemployment taxes they have paid, used to fund state workforce agencies.