In Figure 3-7 above, if natural real GDP = $2500, AP = $250, and the change in "a" = change in I = change in NX = 0, the tax cut required to achieve then natural real GDP is

A) $312.50.
B) $250.00.
C) $500.00.
D) none of the above.


A

Economics

You might also like to view...

Which of the following are barriers to making decisions?

a. statistics b. lack of statistics c. emotions d. all of the above

Economics

Which of the following would most likely increase income inequality?

A. Improvements in public education. B. Greater monopoly power among product sellers. C. Greater equality in the distribution of wealth. D. Fewer differences in working conditions across occupations.

Economics

Could the high-income Asian economies be characterized as open economies? Explain

What will be an ideal response?

Economics

Those that lose from an increase in the minimum wage are

A. consumers who pay lower prices for goods. B. all workers. C. those workers who keep their jobs. D. employers.

Economics