If the government wants to increase real GDP levels,it could

Question

Quizplus · Accepted Answer

Increasing government expenditures can lead to an increase in aggregate demand, which can lead to an increase in real GDP levels. This is because the government spending can stimulate economic growth as businesses and consumers respond to the increase in spending. This leads to an increase in investment, consumption, and overall economic activity. On the other hand, decreasing government expenditures and increasing taxes can have the opposite effect, reducing demand and putting a damper on economic growth.

If the Government Wants to Increase Real GDP Levels,it Could