An increase in private consumer spending and an increase in government expenditure results in a decrease in GDP. True or false, provide one reason for your answer?

False.

One reason for this answer is that an increase in private consumer spending and an increase in government expenditure typically lead to an increase in overall economic activity, which would result in an increase in GDP rather than a decrease.

False.

An increase in private consumer spending and government expenditure will increase aggregate demand, which will lead to an increase in output and GDP.