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Table 12.2 -Refer to Table 12.2.Consider the Hypothetical Information in the Table

Question 155

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Table 12.2 Table 12.2 -Refer to Table 12.2.Consider the hypothetical information in the table above for potential real GDP, real GDP, and the price level in 2017 and in 2018 if the federal government does not use fiscal policy.If the federal government wants to keep real GDP at its potential level in 2018, it should A) decrease income taxes. B) decrease government purchases. C) decrease the money supply. D) increase the level of interest rates. E) increase employment insurance payments.
-Refer to Table 12.2.Consider the hypothetical information in the table above for potential real GDP, real GDP, and the price level in 2017 and in 2018 if the federal government does not use fiscal policy.If the federal government wants to keep real GDP at its potential level in 2018, it should


A) decrease income taxes.
B) decrease government purchases.
C) decrease the money supply.
D) increase the level of interest rates.
E) increase employment insurance payments.

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