Arrange the following statement considering the effects on total income and output when the government purchases (G) increase keeping taxes constant.

(A). Planned aggregate expenditure will increase.
(B). When G exceeds T, the government runs a deficit.
(C). Equilibrium income will increase.
(D). Aggregate demand schedule shifts rightward.

Choose the correct answer from the options given below:

(B), (A), (D), (C)

The correct answer is Option (3) → (B), (A), (D), (C)

(B) When G exceeds T, the government runs a deficit. If government expenditure (G) increases while taxes (T) remain constant, and G > T, it results in a budget deficit.

(A) Planned aggregate expenditure will increase. Higher government spending directly increases planned aggregate expenditure, which is the total planned spending in the economy.

(D) Aggregate demand schedule shifts rightward. As planned expenditure increases, the aggregate demand curve shifts to the right, indicating higher demand at every price level.

(C) Equilibrium income will increase. With the rise in aggregate demand, the economy moves to a new higher equilibrium level of income and output.