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The Following Information Is for a Closed Economy

Question 83

Multiple Choice

The following information is for a closed economy:
The following information is for a closed economy: -Refer to the above information.If in addition to spending $80 billion at each level of GDP,government 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.
-Refer to the above information.If in addition to spending $80 billion at each level of GDP,government 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.

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