How Will an Increase in Government Expenditures During a Recession

Multiple Choice

How will an increase in government expenditures during a recession be reflected in GDP?

A) An increase in government spending will reduce aggregate demand and decrease GDP.
B) An increase in government spending will not affect GDP.
C) An increase in government spending will increase GDP, but only if it is directed toward economically productive projects.
D) The government spending will increase GDP even if the spending encourages rent seeking and other unproductive activities.