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Effects of discretionary fiscal policy Suppose the economy had been producing at potential GDP but now is producing above it. Which of the following are

Effects of discretionary fiscal policy

Suppose the economy had been producing at potential GDP but now is producing above it. Which of the following are discretionary fiscal policies that could bring the economy closer to potential GDP?Check all that apply.

A rise in spending to prevent coastal erosion

A tax increase

A reduction in spending on new road construction

A tax cut

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