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in a certain year, an economy's potential output is $280 billion, while its equilibrium real output is expected to be $300 billion. Under these conditions,
in a certain year, an economy's potential output is $280 billion, while its equilibrium real output is
expected to be $300 billion. Under these conditions, the government should:
A. increase tax rates and reduce government purchases
B. discourage personal saving by reducing the interest rate on government bonds
C. increase government purchases
D. encourage private investment by reducing corporate income taxes
E. increase amounts spent on government transfer payments
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