Question
The economy is currently at a level of output that exceeds potential GDP (Yp). List two fiscal policy options that would move the economy closer
The economy is currently at a level of output that exceeds potential GDP (Yp). List
two fiscal policy options that would move the economy closer to potential real GDP.
Show and explain how your policy would achieve the desired result. Make sure to
explain what will happen to output and price level.
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Microeconomics Principles, Problems and Policies
Authors: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn
20th edition
978-0077660819, 77660811, 978-1259450242
