Which of the Following Changes Could Create a More Positive

Multiple Choice

Which of the following changes could create a more positive output gap in an economy?
(i) The GDP of an important trading partner falls.
(ii) Defense spending increases.
(iii) Consumer wealth increases.
(iv) The risk premium decreases.

A) (i) only
B) (i) , (ii) , and (iii)
C) (iii) and (iv)
D) (ii) , (iii) , and (iv)