Multiple Choice
If a government raises its expenditures by $50 billion and at the same time levies a lump-sum tax of $50 billion, the net effect on the economy will be to
A) increase GDP by less than $50 billion.
B) increase GDP by more than $50 billion.
C) increase GDP by $50 billion.
D) make no change in GDP.
Correct Answer:
Verified
Correct Answer:
Verified
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