Question 1
Refer to the information provided in Table 24.8 below to answer the question(s) that follow.
Refer to Table 24.8. The economy is at the equilibrium level of output. If government spending increases by $200 billion, the new equilibrium level of output is
◦ $5,600 billion.
◦ $4,600 billion.
◦ $4,400 billion.
◦ $4,000 billion.
Question 2
Refer to the information provided in Table 24.8 below to answer the question(s) that follow.
Refer to Table 24.8. The economy is at the equilibrium level of output. If government spending decreases by $50 billion, the new equilibrium level of output is
◦ $3,100 billion.
◦ $2,400 billion.
◦ $1,550 billion.
◦ $1,450 billion.
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