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

Question 219

Multiple Choice

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 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

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