Suppose that the current equilibrium GDP is $1.85 trillion and that potential GDP is $1.83 trillion.Will decreasing government purchases by $20 billion, or raising taxes by $20 billion, restore the economy to potential GDP? Explain.

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The Answer of Suppose that the current equilibrium GDP is $1.85 trillion and that potential GDP is $1.83 trillion.Will decreasing government purchases by $20 billion, or raising taxes by $20 billion, restore the economy to potential GDP? Explain.

Suppose That the Current Equilibrium GDP Is $1