In the short run,an increase in government spending growth will cause the real GDP growth to:
A) increase.
B) decrease.
C) remain unchanged.
D) become unpredictable.

Question

Quizplus · Accepted Answer

An increase in government spending leads to an increase in aggregate demand, which results in an increase in real GDP growth in the short run. Therefore, the correct choice is A, increase.

In the Short Run,an Increase in Government Spending Growth Will