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Tidy Tidy
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9 years ago
Suppose real GDP is $13 trillion, potential real GDP is $13.5 trillion, and Congress and the president plan to use fiscal policy to restore the economy to potential real GDP. Assuming a constant price level, Congress and the president would need to increase government purchases by
A) $500 billion.
B) less than $500 billion.
C) more than $500 billion.
D) None of the above are correct. Congress must act to decrease government purchases in this case.
Textbook 
Essentials of Economics

Essentials of Economics


Edition: 4th
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SydnieSydnie
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Tidy Author
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9 years ago
Helped a lot
africa143
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I appreciate what you did here, answered it right Smiling Face with Open Mouth
jamiebonf99
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Just got PERFECT on my quiz
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