Other Things Equal, If $100 Billion of Government Purchases (G)

Multiple Choice

Other things equal, if $100 billion of government purchases (G) is added to private spending (C + I_g + X_n) , GDP will:

A) increase by $100 billion.
B) increase by more than $100 billion.
C) increase by less than $100 billion.
D) fall by $100 billion