Which of the following scenarios would most likely lead to an increase in Real GDP, considering the expenditures and overall economic indicators?

An increase in Real GDP typically happens when there is more spending in the economy. For example, if the government decides to build new roads and schools, this creates jobs and increases demand for materials. As workers earn money, they spend it on goods and services, which helps businesses grow. This cycle of spending can lead to a higher Real GDP because it reflects the total value of all goods and services produced in the economy. Therefore, when the government invests in infrastructure, it usually boosts economic activity and increases Real GDP.