An economy has real GDP of $300 billion and potential GDP of $240 billion. To move the economy to potential GDP, the government should ... taxes and/or ... government purchases

What will be an ideal response?


increase; decrease

Economics

You might also like to view...

A central government collected taxes totaling $120 billion in the previous year. It's expenditure during the year was roughly the same. This is an example of a

a. balanced budget. b. surplus budget. c. deficit budget. d. zero budget.

Economics

Which would be considered an investment, according to economists?

A. The sale of a retail department store building by Sears to JCPenney. B. The purchase of newly issued shares of stock in Dell. C. The construction of a new plant by Ford. D. Public transfer payments.

Economics

Protection of new products from global competition is known as

A. a quota. B. dumping. C. the infant-industry argument. D. protection of domestic jobs.

Economics

As a holder of ________, you are entitled to a portion of the issuing party's profits.

A. a corporate bond B. a bank loan C. a government bond D. a share of common stock

Economics