Real GDP is $16 trillion and potential real GDP is $16.7 trillion. Congress and the President plan to use fiscal policy to return real GDP to potential real GDP. Congress and the President would need to decrease taxes bySelect an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer.a700 billionbless than 700 billioncMore than 700 billiondCan't tell

Consider the hypothetical information in the following table for potential GDP, real GDP and the price level in 2013 and in 2014 if the government does not use fiscal policy. Year Potential GDP Real GDP Price Level 2013 $1.5 trillion $1.5 trillion 150 2014 $1.7 trillion $1.6 trillion 152 If the government wants to use fiscal policy to keep real GDP at its potential level in 2014, it should: increase interest rates. decrease transfer payments. decrease interest rates. decrease government purchases. decrease income taxes.

The average real GDP per capita across the world in 2018 was about:Multiple choice question.$30,000 compared to the United States where real GDP per capita was about $60,000.$10,000 compared to the United States where real GDP per capita was about $25,000.$24,000 compared to the United States where real GDP per capita was about $40,000.$16,565 compared to the United States where real GDP per capita was about $61,391.

If the marginal propensity to save is 0.2 and the government decreases its purchases by $20 billion, then real GDP willDecrease by $100 billion.Increase by $100 billion.Decrease by $25 billion.Increase by $25 billion.

Real GDP is the yearly production of final goods and services valued atGroup of answer choicescurrent prices.constant prices.expected future prices.the ratio of current prices to constant prices.

If the government purchases multiplier equals 2, and real GDP is $14 trillion with potential GDP $15 trillion, then government purchases would need to increase by ________ to restore the economy to potential GDP.