00:01
Here the answer for the first part is raising government dollars will reduce while reducing taxes of 80 billion dollars whether it is advisable or not.
00:29
So, from this option we can say that suppose it to an increase in aggregate demand.
00:44
So, if both are disturbed so that is we are increasing the government spending as well as reducing the tax means we may not get sufficient money.
00:53
So, in case there exist an aggregate demand.
00:56
So, increase the aggregate demand will be increased due to increased government expenditure, but it also results in substantial reduction in substantial reduction in government revenue.
01:20
Second one here the statement given is the decreasing government spending by 60 billion while reducing taxes by 60 billion.
01:40
So, we are government spending the government spending also we are reducing the taxes.
01:47
So, in that case that is we are decreasing the government spending as well as decreasing the that is reduction of taxes we are following.
01:56
So, which means that this may reduce the aggregate demand also it includes the reduction of taxes which might stimulate consumer spending and partially offset the decrease.
02:21
Third one decreasing the government spending by 60 billion dollars while raising taxes by 80 billion dollars.
02:51
So, taxes are increased, but government spending are increased.
02:55
So, we will get a government spending are decreased.
02:57
So, we will get a surplus amount there is no demand.
03:00
Hence, from this we can say that raising the taxes may further dampen consumer spending and business investment.
03:14
Fourth one here increase the government spending by 60 billion while raising tax by 60 billion...