Suppose Real GDP Is $13 Trillion, Potential GDP Is $13

Multiple Choice

Suppose real GDP is $13 trillion, potential GDP is $13.5 trillion, and the government plans to use fiscal policy to restore the economy to potential GDP. Assuming a constant price level, the government would need to increase government purchases by:

A) $500 billion.
B) less than $500 billion.
C) more than $500 billion.
D) None of these options is correct. The government must act to decrease government purchases in this case.