QUESTION $14$

Assume Congress enacts a $$500$ billion increase in spending and a $$500$ billion tax increase to finance the additional government spending. The result of this balanced$-$budget approach is a:

a$.$ $$500$ billion decrease in aggregate demand.

b$.$ $$1,000$ billion increase in aggregate demand.

c$.$ $$1,000$ billion decrease in aggregate demand.

d$.$ $$500$ billion increase in aggregate demand.