Use the following to answer question 132:
Figure: Short-Run Equilibrium
-(Figure: Short-Run Equilibrium) Look at the figure Short-Run Equilibrium. The economy is in short-run equilibrium. To move the economy to potential GDP, the government should reduce its spending by an amount equal to:

Question

Use the following to answer question 132:
Figure: Short-Run Equilibrium

-(Figure: Short-Run Equilibrium) Look at the figure Short-Run Equilibrium. The economy is in short-run equilibrium. To move the economy to potential GDP, the government should reduce its spending by an amount equal to:

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The Answer of Use the following to answer question 132: Figure: Short-Run Equilibrium -(Figure: Short-Run Equilibrium) Look at the figure Short-Run Equilibrium. The economy is in short-run equilibrium. To move the economy to potential GDP, the government should reduce its spending by an amount equal to: A)(Y₁ - Y_P). B)(Y₁ - Y_P) / (1 - MP C). C)(Y₁ - Y_P)MPC. D)(Y₁ - Y_P)(1 - MP

Use the Following to Answer Question 132