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:

Research Design

A structured plan or strategy used to investigate a specific problem, question, or hypothesis in order to gather and analyze data.

Types Of Data

Various classifications of data, including quantitative (numerical) and qualitative (non-numerical) data among others.

Secondary Data

Information that has been previously collected and is available for use by others for research, analysis, or decision-making purposes, unlike primary data which is collected firsthand.

Timely

Occurring at a suitable or opportune time; being prompt and efficient.