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 spending by $100 billion and increases taxes by $100 billion, equilibrium aggregate output
A. increases by more than $100 billion.
B. increases by less than $100 billion.
C. does not change.
D. increases by $100 billion.
Answer: D
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