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.
Definitions:
Balanced Funds
Mutual funds that invest in a mix of asset classes, typically stocks and bonds, to provide a balance between risk and return.
Unit Investment Trust
An investment company that offers a fixed portfolio of securities in a one-time public offering, and is structured to provide a specific investment objective.
Net Asset Value
The total value of a fund's assets minus its liabilities, often used to calculate the price of a share in a mutual fund or an ETF.
Open Market
A market where goods, services, and financial instruments are traded freely, with prices determined by supply and demand.
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