Everything else held constant,an increase in government spending will cause
A)aggregate demand to increase.
B)aggregate demand to decrease.
C)the quantity of aggregate demand to increase.
D)the quantity of aggregate demand to decrease.

Question

Quizplus · Accepted Answer

An increase in government spending will result in an increase in aggregate demand as government spending is a component of aggregate demand. This will result in an increase in the total amount of goods and services demanded in the economy.

Everything Else Held Constant,an Increase in Government Spending Will Cause