if-the-economys-aggregate-demand-is-200-billion-below-potential-gdp-what-fiscal-

Question

If the economy's aggregate demand is $200 billion below potential GDP, what fiscal policy action could help achieve equilibrium?

Accepted Answer

Increase government spending by $200 billion.

Answer

Decrease taxes by $200 billion.

Answer

Increase taxes by $200 billion.

Answer

Decrease government spending by $200 billion.

If the economy's aggregate demand is \$200 billion below potential GDP, what fiscal policy action could help achieve equilibrium?