Refer to Table 1. At an output level of $1,200 billion, there is a tendency for output All Numbers are in $ Billion Output Consumption Net Investment Government ( Income ) Spending Taxes Spending Spending 400 400 100200 100 800700100200 100 100 2001001,200 1,600 2,000 1,000 1,300 1,600 100200 100 100 200 100 to remain constant. to either increase or decrease. to increase . to fall