Q1:
Macro
Income & Employment
Medium
Arrange the following statement considering the effects on total income and output when the government purchases (G) increase keeping taxes constant.
(A). Planned aggregate expenditure will increase.
(B). When G exceeds T, the government runs a deficit.
(C). Equilibrium income will increase.
(D). Aggregate demand schedule shifts rightward.
Choose the correct answer from the options given below: