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Below Is Some Data for a Hypothetical Economy

Question 21

Multiple Choice

Below is some data for a hypothetical economy:
Below is some data for a hypothetical economy: -Refer to the information above to answer this question.Suppose the economy is presently in equilibrium.If the government increases its spending by the amount of its current surplus/deficit,what will be the result? A) Increase equilibrium income by $40 and increase the surplus. B) Increase equilibrium income by $40 and reduce the surplus. C) Increase equilibrium income by $80 and increase the surplus. D) Increase equilibrium income by $80 and reduce the surplus. E) Increase equilibrium income by $40 and balance the budget.
-Refer to the information above to answer this question.Suppose the economy is presently in equilibrium.If the government increases its spending by the amount of its current surplus/deficit,what will be the result?


A) Increase equilibrium income by $40 and increase the surplus.
B) Increase equilibrium income by $40 and reduce the surplus.
C) Increase equilibrium income by $80 and increase the surplus.
D) Increase equilibrium income by $80 and reduce the surplus.
E) Increase equilibrium income by $40 and balance the budget.

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