Refer to the information provided in Figure 24.5 below to answer the question(s) that follow. Figure 24.5Refer to Figure 24.5. If the economy is in equilibrium and the government increases taxes by $50 billion, equilibrium aggregate output ________ to $________ billion.

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


Answer: D

Economics

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