Suppose real GDP exceeds potential real GDP. If the government decreases its expenditures on goods and services, then real GDP _______and the price level ________   (a) Decreases; rises (b) Increases; falls (c) Decreases; falls (d) Increases, rises

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Q: True or False If spending exceeds output, real GDP will decline as firms cut back on production.

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A: Economic recession  means that when there is sudden decline in the economy.

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Q: If the government wants to increase real GDP levels, it could

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