Given Full-Employment Output = $2,800, Equilibrium Real GDP = $2,500

Multiple Choice

Given full-employment output = $2,800, equilibrium real GDP = $2,500, and MPS = 0.25, which of the following changes would most likely bring the economy to a full-employment level of real GDP?

A) $300 decrease in taxes.
B) $75 increase in government spending.
C) $75 decrease in taxes.
D) $75 decrease in government spending.