Which of the following will increase macroeconomic equilibrium real gross domestic product?
A)a decrease in government spending.
B)a decrease in productivity.
C)a decrease in taxes.
D)an increase in input prices.

Question

Quizplus · Accepted Answer

A decrease in taxes will increase disposable income for individuals and businesses, leading to an increase in spending and investment, which in turn will increase aggregate demand and result in an increase in equilibrium real gross domestic product.

Which of the Following Will Increase Macroeconomic Equilibrium Real Gross