An equal increase in government purchases and taxes will cause
A) an increase in real GDP.
B) no change in real GDP.
C) an increase in the budget surplus.
D) a reduction in the cyclically adjusted budget surplus.

Question

Quizplus · Accepted Answer

The Answer of An equal increase in government purchases and taxes will cause
A) an increase in real GDP.
B) no change in real GDP.
C) an increase in the budget surplus.
D) a reduction in the cyclically adjusted budget surplus.

An Equal Increase in Government Purchases and Taxes Will Cause