When the Public Sector Is Added to the Aggregate Expenditures

Multiple Choice

When the public sector is added to the aggregate expenditures model:

A) the equilibrium condition becomes G + S = T + I_g + X.
B) the equilibrium condition becomes G + T = S + I_g + X.
C) the equilibrium condition becomes C_a + I_g + X_n + G + T = GDP.
D) we add a new leakage in the form of taxes and a new injection in the form of government spending.