Question: Below is some data for a hypothetical economy: C = - 2 3 2 + 0 . 8 Y XN = 1 0 7 -

Below is some data for a hypothetical economy:
C =-232+0.8Y
XN =107-0.1Y
I =100
T =340
G =340
Refer to the information above to answer this question. If government decreased both its spending and taxes by $45, how would equilibrium GDP change?
It would increase by $60.
It would decrease by $60.
It would increase by $30.
It would decrease by $30.

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