Which of the following is likely to happen if the government lowers its expenditure?
A) Unemployment will increase.
B) Consumption will increase.
C) Investment will increase.
D) Price level will rise.

Question

Quizplus · Accepted Answer

If the government lowers its expenditure, it could result in a decrease in government jobs, contracts and subsidies, resulting in a ripple effect on other sectors, leading to an increase in unemployment.

Which of the Following Is Likely to Happen If the Government