Government can raise GDP by $1,000 billion by:
A)raising government purchases
B)reducing taxes
C)increasing transfer payments
D)All of the above.

Question

Government can raise GDP by $1,000 billion by:
A)​raising government purchases 
B)​reducing taxes 
C)​increasing transfer payments 
D)​All of the above.

Quizplus · Accepted Answer

All of the above options can increase GDP. Raising government purchases directly increases demand. Reducing taxes can increase disposable income, leading to higher consumption. Increasing transfer payments can also boost consumption by increasing recipients' income.

Government Can Raise GDP by $1,000 Billion By