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Business, 14.12.2019 06:31 jerz445

Consider the following statement: "real gdp is currently $17.7 trillion, and potential real gdp is $17.4 trillion. if congress and the president would decrease government purchases by $300 billion or increase taxes by $300 billion, the economy could be brought to equilibrium at potential gdp." if government purchases were to decrease by $300 billion or if taxes were increased by $300 billion, the equilibrium level of real gdp would decrease by

a. exactly $300 billion.
b. less than $300 billion.
c. more than $300 billion.
d. none of the above; equilibrium real gdp would actually increase.

therefore the statement above is

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