Suppose Real GDP Is $12

question 104

Multiple Choice

Suppose real GDP is $12.1 trillion and potential GDP is $12.6 trillion.To move the economy back to potential GDP,Congress should

• A)lower taxes by an amount less than $500 billion.
• B)raise government purchases by $500 billion.
• C)raise government purchases by more than $500 billion.
• D)lower taxes by $500 billion.
• E)lower government purchases by $500 billion.

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Definitions:

Rationalize

To attempt to explain or justify behavior or an attitude with logical reasons, even if these are not appropriate.

Authority Decisions

Decisions made by individuals or bodies within an organization who hold power or authority, often related to governance, policy, and strategic direction.

Manager

An individual in an organization who is responsible for overseeing and guiding the work of a group of people.

Team Leader

A person who is responsible for guiding, directing, and managing a group of individuals, aiming to achieve collective goals while fostering a cohesive and effective team environment.