Use the aggregate expenditures model and the following values to answer the next question. AMPCIGT$7500.5$1,000$1,000$500Determine the equilibrium level of consumption (find ?C) following a decrease in taxes from 500 to 400 (?T = -$100).

A. $2,900
B. $3,200
C. $3,100
D. $3,000


Answer: C

Economics

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