The economy is currently at a level of output that exceeds potential GDP (Yp).  List two fiscal policy options that would move the economy closer to potential real GDP.  Show and explain how your policy would achieve the desired result.  Make sure to explain what will happen to output and price level.                                                                                               Policy Options:                                                                                         Explanation:

Survey Of Economics
10th Edition
ISBN:9781337111522
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter17: Federal Deficits, Surpluses, And The National Debt
Section17.1: The Federal Budget Balancing Act
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The economy is currently at a level of output that exceeds potential GDP (Yp).  List two fiscal policy options that would move the economy closer to potential real GDP.  Show and explain how your policy would achieve the desired result.  Make sure to explain what will happen to output and price level.

 
   

 

 

                                                                                    Policy Options:

 

 

                                                                                    Explanation:

 
   

 

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