If policy makers implement expansionary fiscal policy and do not take into account crowding out, equilibrium GDP is likely to:
A)be at potential GDP.
B)be above potential GDP.
C)be below potential GDP.
D)cause an inflationary gap.

Question

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The Answer of If policy makers implement expansionary fiscal policy and do not take into account crowding out, equilibrium GDP is likely to:
A)be at potential GDP.
B)be above potential GDP.
C)be below potential GDP.
D)cause an inflationary gap.

If Policy Makers Implement Expansionary Fiscal Policy and Do Not