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If the economy is in equilibrium with real GDP less than potential GDP , there is _ _ _ _ _ _ _ _ gap
If the economy is in equilibrium with real GDP less than potential GDP there is gap and a fiscal policy that is appropriate.
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Part
A
a recessionary; decreases aggregate demand
B
an inflationary; decreases aggregate demand
C
a recessionary; increases potential GDP
D
an inflationary; increases aggregate demand
E
a recessionary; increases aggregate demand
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