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Suppose the current level of real GDP is below the potential level of real GDP causing a gap.According to the Aggregate Demand-Aggregate Supply model, what
Suppose the current level of real GDP is below the potential level of real GDP causing a gap.According to the Aggregate Demand-Aggregate Supply model, what should the Fiscal Policy be?
1.Increase government spending to decrease Aggregate Demand.
2.Increase government spending to increase Aggregate Demand.
3.Decrease government spending to decrease Aggregate Demand.
4.Decrease government spending to increase Aggregate Demand.
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