Assume That the Economy Is in a Recession and Has

Multiple Choice

Assume that the economy is in a recession and has a balanced budget.If the government increases its spending to reduce unemployment,what will happen to GDP and the government's budget?

A) GDP will rise and the budget will be in a deficit.
B) GDP will fall and the budget will be in a deficit.
C) GDP will rise and the budget will be in a surplus.
D) GDP will fall and the budget will be in a surplus.