The primary benefit to the macroeconomy of increasing government spending is a(n)
A)decrease in the price level.
B)decrease in real GDP.
C)increase in the price level.
D)decrease in the unemployment rate.

Question

Quizplus · Accepted Answer

Increasing government spending can stimulate aggregate demand and lead to an increase in the overall level of economic activity. This can result in increased employment opportunities and a decrease in the unemployment rate.

The Primary Benefit to the Macroeconomy of Increasing Government Spending