GDP C S Ig $100 $100 $0 $80

Multiple Choice

GDP C S Ig $100 $100 $0 $80
200 160 40 80
300 220 80 80
400 280 120 80
500 340 160 80
600 400 200 80
700 460 240 80
Refer to the accompanying information for a closed economy.If government now spends $80 billion at each level of GDP and taxes remain at zero, the equilibrium GDP

A) will rise to $700.
B) will rise to $600.
C) will rise to $500.
D) may either rise or fall.