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 spends $80 billion at each level of GDP, and imposes a lump-sum tax of $100

A) equilibrium GDP will now be $350.
B) equilibrium GDP will now be $400.
C) equilibrium GDP will now be $300.
D) the equilibrium GDP cannot be determineD.