If the government increases spending and there is a complete direct expenditure offset, then a. the price level will drop. aggregate demand and real...

If the government increases spending and there is a complete direct expenditure offset, then

a. the price level will drop.b. aggregate demand and real Gross Domestic Product (GDP) will not change.c. aggregate demand and real Gross Domestic Product (GDP) will increase by the amount of the spending increase.d. the government spending multiplier will be greater than zero.

When the government cuts taxes or increases government spending