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MMLU-Pro / 7427 / If the government of country Z increases spending by …

Problem

Answer published by the source. Consult the official source to check your work against its answer.

question

If the government of country Z increases spending by $12 million dollars and raises tax collections by the same amount then what will be the overall impact of these moves on real GDP in country Z?

category

economics

options

  1. Real GDP will remain unchanged but inflation will increase.
  2. Real GDP will increase by $24 million.
  3. Real GDP will decrease by $12 million.
  4. Real GDP will increase by $12 million.
  5. Real GDP will decrease by $18 million.
  6. Real GDP will remain unchanged.
  7. Real GDP will decrease by $6 million.
  8. Real GDP will increase by $6 million.
  9. Real GDP will decrease, but inflation will decrease as well.
  10. Real GDP will increase by $18 million.

src

ori_mmlu-high_school_macroeconomics

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