Question 1 {1 point) I Refer to the figure below, with initial equilibrium at point A: O 1) A larger government results in more output being produced but reduces consumption through negative income effect 0 2) As represented consumer pavs higher taxes. disposable income falls, and in new equilibrium, hefshe spends less on consumption goods and works harder to support a larger government 0 3) Private consumption is crowded out bv government Purchases, but it is not completelv crowded out because of the increase in output 0 4) The change in Government spending is the distance AD, and the change in consumption is the distance AE O 5) All of the above are true