Suppose the economy is in a boom and spending is thought to be $75 billion above potential GDP. Suppose Congress decides to reduce military spending in an attempt to stabilize the economy.
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Q128: Suppose you have the following data on
Q129: Suppose, for a hypothetical economy, potential GDP
Q130: Suppose the government surplus is currently .5
Q131: Supporters of policy rules argue that automatic
Q132: If real GDP is equal to potential
Q133: Why is there an inverse relationship between
Q134: The size of the budget surplus depends
Q135: Answer the questions below: Q136: Real GDP and the budget deficit are Q137: Suppose the budget deficit for a hypothetical
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