The price level will increase by
a) 2% or less
b) more than 2% but not more than 3%
c) more than 3% but not more than 4%
d) more than 4%
Suppose that last year consumption was $570 billion, tax receipts were $240 billion, and income was $900 billion. The corresponding numbers for this year are $600 billion, $250 billion and $950 billion.