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Homework answers / question archive / Suppose that following a boom in Mexico, US exports of sugar to Mexico rise by 400
Suppose that following a boom in Mexico, US exports of sugar to Mexico rise by 400. Subsequently, we observe an increase in US sugar worker disposable income of 350; an increase in US tax revenues of 50; an increase in consumption spending by US sugar workers of 280; and an increase of saving by US sugar workers of 70.
The eventual increase in equilibrium output is
Group of answer choices
a) 1333.33
b) 571.43
c) 2285.71
d) 333.33
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