Table 101 (All Values Are in Billions of Dollars)
-Refer to Table

Multiple Choice

Table 10.1
$$\begin{array} { | l | l | } \hline \text { Consurmpticn } & C = \$ 1.0 + 0.75 \mathrm { YD } \\\hline \text { Irvestmernt } & = \$ 1.9 \\\hline \text { Goverument purchases } & = \$ 2 \\\hline \text { Net exports } & = - \$ 0.5 \\\hline \text { Taxes } & = \$ 0 \\\hline \text { Goverument trarssfer } & \\\text { gayments } & = \$ 0\end{array}$$
(all values are in billions of dollars)
-Refer to Table 10.1.Suppose that all of the information given in the table remains the same except that taxes equal $0.5 billion.If potential GDP equals $17 billion,by how much would government purchases have to change for equilibrium GDP to equal potential GDP?

A) $0.225 billion
B) $1.25 billion
C) $1.5 billion
D) $5 billion