Refer to Table 10.1. The value of the tax multiplier in this economy is

Based on the data in the table above, what does GDP equal?

A) $8,900 billion B) $10,200 billion C) $9,800 billion D) $10,400 billion E) $10,000 billion

Crowding out is most likely to occur with which of the following changes?

A) Decrease in government spending B) Increase in budget surplus C) Increase in budget deficit D) Decrease in the real interest rate E) Decrease in trade deficit