What are the effects of an increase in government purchases? (Select all that apply.) A. Decrease in government spending B. Increase in real wages C. Increase in overall GDP D. Increase in aggregate output E. Consumption decreases F. Employment increases

ECON MACRO
5th Edition
ISBN:9781337000529
Author:William A. McEachern
Publisher:William A. McEachern
Chapter11: Fiscal Policy
Section: Chapter Questions
Problem 1.7P
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What are the effects of an increase in government purchases? (Select all that apply.)
A. Decrease in government spending
B. Increase in real wages
C. Increase in overall GDP
D. Increase in aggregate output
E. Consumption decreases
F. Employment increases
Transcribed Image Text:What are the effects of an increase in government purchases? (Select all that apply.) A. Decrease in government spending B. Increase in real wages C. Increase in overall GDP D. Increase in aggregate output E. Consumption decreases F. Employment increases
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