Table 11-1
-Government can raise GDP by $1,000 billion by

Question

Table 11-1 
-Government can raise GDP by $1,000 billion by

Quizplus · Accepted Answer

All three choices (A, B, and C) can have a positive impact on GDP. Raising government purchases means the government is spending more money, which can stimulate demand in the economy and lead to more output and employment. Reducing taxes gives people and businesses more disposable income to spend or invest, which can also boost demand and output. Increasing transfer payments, such as unemployment benefits or welfare payments, can provide support to individuals who may be struggling financially, which can also help maintain or stimulate demand in the economy. Therefore, all three options can contribute to increasing GDP.

Table 11-1 -Government Can Raise GDP by $1,000 Billion by