The figure above shows a nation's aggregate demand curve,aggregate supply curve,and potential GDP.
-In the figure above,to use fiscal policy to move the economy back to potential GDP,the government must increase government expenditure by ________ $1 trillion and/or decrease taxes by ________ $1 trillion.
A)exactly;exactly
B)more than;less than
C)less than;more than
D)less than;less than
E)more than;more than

Question

The figure above shows a nation's aggregate demand curve,aggregate supply curve,and potential GDP.
-In the figure above,to use fiscal policy to move the economy back to potential GDP,the government must increase government expenditure by ________ $1 trillion and/or decrease taxes by ________ $1 trillion.
A)exactly;exactly 
B)more than;less than 
C)less than;more than 
D)less than;less than 
E)more than;more than

Quizplus · Accepted Answer

The Answer of  The figure above shows a nation's aggregate demand curve,aggregate supply curve,and potential GDP.
-In the figure above,to use fiscal policy to move the economy back to potential GDP,the government must increase government expenditure by ________ $1 trillion and/or decrease taxes by ________ $1 trillion.
A)exactly;exactly 
B)more than;less than 
C)less than;more than 
D)less than;less than 
E)more than;more than

The Figure Above Shows a Nation's Aggregate Demand Curve,aggregate Supply