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An Economy's Potential Output Is Equal to $232 Billion,and Its

Question 167

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An economy's potential output is equal to $232 billion,and its current output is equal to $230 billion.To return the economy to long-run equilibrium,the government should


A) increase spending by $2 billion.
B) decrease spending by $2 billion.
C) increase spending by more than $2 billion.
D) increase spending by less than $2 billion.
E) decrease spending by less than $2 billion.

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