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 spending by $200 billion and increases taxes by $200 billion, equilibrium aggregate output
A) does not change.
B) increases by $200 billion.
C) increases by less than $200 billion.
D) increases by more than $200 billion.
Correct Answer:

Verified
Correct Answer:
Verified
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