I Have Found There Are

Consider the hypothetical information in the following table for potential GDP, real GDP and the price level in 2013 and in 2014 if the government does not
use fiscal policy.
Year
Potential GDP
Real GDP
Price Level
2013
$1.5 trillion
$1.5 trillion
150
2014
$1.7 trillion
$1.6 trillion
152
If the government wants to use fiscal policy to keep real GDP at its potential level in 2014, it should:
increase interest rates.
O
decrease government purchases.
O
decrease transfer payments.
O
decrease interest rates.
O
decrease income taxes.Economics

You Might Also Like