If a government raises its expenditures by $50 billion and at the same time levies a lump-sum tax of $50 billion, the net effect on the economy will be to

A. increase real GDP by $50 billion.
B. increase real GDP by more than $50 billion.
C. make no change in real GDP.
D. increase real GDP by less than $50 billion.


Answer: A

Economics

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