Suppose We Have an Economy in Which G = 100,t

Suppose we have an economy in which G = 100,t = 0.26,Y = 3800,and YN = 4000.Then t rises to 0.28 as the same time as G rises to 1150.The overall impact of this resettling of the fiscal variables is ________ because ________.

A) expansionary,the actual deficit rises
B) expansionary,the natural employment deficit falls
C) contractionary,the natural employment deficit falls
D) contractionary,the natural employment deficit rises
E) contractionary,the actual deficit rises