Briefly explain whether you agree with the following statement: Real GDP is currently $20.7 trillion, and potential
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Briefly explain whether you agree with the following statement: Real GDP is currently $20.7 trillion, and potential GDP is $20.4 trillion. If Congress and the president would decrease government purchases by $300 billion or increase taxes by $300 billion, the economy could be brought to equilibrium at potential GDP.
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The statement implies that the economy is currently operating slightly above its potential GDP with ...View the full answer
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