An Economy Has Real GDP of $300 Billion and Potential

question 28

Multiple Choice

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 expenditure.

• A) increase; increase
• B) decrease; decrease
• C) increase; decrease
• D) decrease; increase

---

Definitions:

Control Computers

The act of commanding or managing computers and their functions through software or hardware means.

Digital Devices

Electronic tools that store, process, and display data using digital techniques, such as smartphones, computers, and tablets.

Promotional Messages

Communications designed to market or advertise a product, service, or event to an audience.

Laws And Regulations

The system of rules that are created and enforced through social or governmental institutions to regulate behavior.