Other things constant, what causes a decrease in real GDP demanded?

Question

Quizplus · Accepted Answer

A decrease in government purchases will decrease the demand for goods and services, leading to a decrease in real GDP demanded. Option A (increase in government purchases) will actually increase the demand for goods and services, leading to an increase in real GDP demanded. Option B (increase in transfer payments) and option D (decrease in net taxes) can potentially increase consumer spending and stimulate the economy, leading to an increase in real GDP demanded.

Other Things Constant, What Causes a Decrease in Real GDP