Ignoring any supply-side effects, suppose the government is considering cutting taxes by 100 billion or increasing government expenditures on goods and services by 100 billion. What will be the impact on the economy?
1) The economy will experience a boost due to increased government expenditures
2) The economy will experience a boost due to tax cuts
3) The economy will experience a decline due to increased government expenditures
4) The economy will experience a decline due to tax cuts