What policy actions can be taken to put gdp back on target


Suppose that GDP (Y) is $40 billion below its potential level (Y*). It is expected that next-period GDP will be $20 below potential and that two periods from now it will be back at its potential level. You are told that the multiplier for government spending is 2 and that the effects of increased government spending are immediate. What policy actions can be taken to put GDP back on target each period.

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Microeconomics: What policy actions can be taken to put gdp back on target
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