If Government Expenditure Increases by $200 Billion and Taxes Simultaneously

question 180

Multiple Choice

If government expenditure increases by $200 billion and taxes simultaneously increase by $200 billion,then aggregate demand

• A)remains the same.
• B)decreases no matter what happens to aggregate supply.
• C)increases no matter what happens to aggregate supply.
• D)increases only if aggregate supply increases.
• E)increases only if aggregate supply decreases.