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Loraine Loraine
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10 years ago
Suppose the economy is in an equilibrium in which real GDP is less than potential GDP. To increase real GDP, the government can use a fiscal stimulus of
A) increasing taxes only.
B) decreasing government expenditure only.
C) decreasing taxes and/or increasing government expenditure.
D) decreasing government expenditure and simultaneously increasing taxes.
E) increasing the quantity of money.
Textbook 
Essential Foundations of Economics

Essential Foundations of Economics


Edition: 7th
Authors:
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Start by doing what's necessary; then do what's possible; and suddenly you are doing the impossible.
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SydnieSydnie
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10 years ago
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Loraine Author
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You make an excellent tutor!
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Brilliant ツ
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