In a closed economy, suppose that the consumption function is given by C = 300 + 3/4 (Y - T). The investment is equal to 200; Government spending is 300 and taxes are zero. Suppose also that the current economy has a GDP equal to 3000 (which is not necessarily the equilibrium level of production). With these data we know that the level of GDP must (Hint: calculate if the production is larger or smaller than the demand for goods. What happens if they are not equal?)

a. increase

b. decrease

c. remain the same

d. can't tell