If the government wishes to increase the level of real GDP, it might reduce:
A) Taxes
B) Transfer payments
C) The size of the budget deficit
D) Its purchases of goods and services

Question

Quizplus · Accepted Answer

By reducing taxes, individuals and businesses have more money to spend and invest, which can lead to an increase in consumer and business spending and therefore an increase in the level of real GDP.

If the Government Wishes to Increase the Level of Real