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20.3 Chapter Figures The Figure Above Shows a Nation's Aggregate Demand Curve, Aggregate

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20.3 Chapter Figures
20.3 Chapter Figures     The figure above shows a nation's aggregate demand curve, aggregate supply curve, and potential GDP. -In the figure above, to use fiscal policy to move the economy back to potential GDP, the government must increase government expenditure by ________ $1 trillion and/or decrease taxes by ________ $1 trillion. A) recessionary; exactly; exactly B) inflationary; less than; less than C) recessionary; less than; more than D) recessionary; less than; less than E) recessionary; more than; more than
The figure above shows a nation's aggregate demand curve, aggregate supply curve, and potential GDP.
-In the figure above, to use fiscal policy to move the economy back to potential GDP, the government must increase government expenditure by ________ $1 trillion and/or decrease taxes by ________ $1 trillion.


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