Homework Answers
Since the GDP can be defined the market value of all goods and services which are produced in the domestic territory of the country in the current financial years.
GDP(Y) by expenditure method=C+I+G+X-M
So with the increase in the Government expenditure, and real GDP (Y) is directly related because with the increase in the G, the real GDP (Y) will also increase.
Hence option b is the correct answer.
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