Assume that the economy is initially at an income level of $1,000 and the potential income level is $1,200.How can government fiscal policy be used to get the economy out of this recession? Why might this policy not work in real life?

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The Answer of Assume that the economy is initially at an income level of $1,000 and the potential income level is $1,200.How can government fiscal policy be used to get the economy out of this recession? Why might this policy not work in real life?

Assume That the Economy Is Initially at an Income Level