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3.22. Which of the following statements is correct?
3.22. Which of the following statements is correct?
- [1] If government wishes to decrease the equilibrium level of income, it can increase G and leave t unchanged.
- [2] If government wishes to increase the equilibrium level of income, it can increase G and decrease t.
- [3] If government wishes to reduce the equilibrium level of income, it can decrease t.
- [4] If government wishes to reduce the equilibrium level of income, it can increase G.
- [5] If government wishes to reduce the equilibrium level of income, it can decrease G or
- decrease t, but it cannot do both.