Refer to the graph shown. Assume the market is initially in equilibrium at point j in the graph but the imposition of a per-unit tax on this product shifts the supply curve up from S0 to S1. The amount of revenue the government will collect from this tax is equal to the area of:

If the economy is in equilibrium at $1,000 billion national income and if the multiplier is 3 and intended investment is $400 billion, what happens to national income when intended investment decreases to $380 billion? It will

a. increase to $1,020 billion b. increase to $1,060 billion c. decrease to $980 billion d. decrease to $940 billion e. decrease to $970 billion

Other things being equal, a decline in business taxes will cause investment to:

a. remain unchanged b. increase c. decrease d. to equal consumption