Refer to the information provided in Table 24.8 below to answer the question(s) that follow.Table 24.8All Figures in Billions of DollarsOutput (Income)Net TaxesConsumption Spending (C = 100 + 0.9Yd)SavingsPlannedInvestment PurchasesGovernment Spending2,6001002,3501501502002,8001002,5301701502003,0001002,7101901502003,2001002,8902101502003,4001003,0702301502003,6001003,2502501502003,8001003,430270150200Refer to Table 24.8. If taxes are reduced from $100 billion to $50 billion, the new equilibrium level of output is
A. $4,050 billion.
B. $3,850 billion.
C. $2,100 billion.
D. $1,600 billion.
Answer: A
Economics
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