If expenditure by the government of a country increases,________.
A) the GDP of the country will increase
B) the aggregate price level of the country will decrease
C) the country's expenditure on consumption will decrease
D) the unemployment rate in the country will increase

Question

Quizplus · Accepted Answer

When government expenditure increases, it leads to an increase in demand for goods and services, which results in an increase in production and therefore, an increase in the GDP of the country.

If Expenditure by the Government of a Country Increases,________