Suppose that the Danish Parliament passes a large tax increase and taxes now equals 400. The aggregate output of the Danish economy is characterized as follows. Consumption: C = 100 + 0.5(Y-T) Investment: I = 300 Government: G = 200 Taxes: T = 400 The new level of equilibrium output (Y) in Denmark is 800 .

Suppose that the Danish Parliament passes a large tax increase and taxes now equals 400. The aggregate output of the Danish economy is characterized as follows. Consumption: C = 100 + 0.5(Y-T) Investment: I = 300 Government: G = 200 Taxes: T = 400 The new level of equilibrium output (Y) in Denmark is 800 .


Suppose that the Danish Parliament passes a large tax increase and taxes now equals 400. The aggregate output of the Danish economy is characterized as follows. 


Consumption: C = 100 + 0.5(Y-T)
Investment: I = 300
Government: G = 200
Taxes: T = 400 


The new level of equilibrium output (Y) in Denmark is  800 . 


Answer Key: 800