Fiscal policy actions will result in the greatest increase

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Which of the following fiscal policy actions will result in the greatest increase in Real GDP?

A $500 tax cut and a $500 increase in government spending

A $500 tax cut and a $500 decrease in government spending

A $500 tax increase and a $500 increase in government spending

A $500 tax cut.

A $500 tax increase

Reference no: EM131099090

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