Refer to the Information Provided in Figure 9

Multiple Choice

Refer to the information provided in Figure 9.5 below to answer the questions that follow. Figure 9.5
-Refer to Figure 9.5. If the economy is in equilibrium and the government increases taxes by $50 billion, equilibrium aggregate output ________ to $________ billion.

A) increases; 2,000
B) decreases; 1,550
C) decreases; 1,450
D) decreases; 1,400