Ensure that the economy reaches its potential output level

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Reference no: EM13771627

According to the classical model, to ensure that the economy reaches its potential output level, the government

A) need not worry about its fiscal policy.

B) must run a budget deficit.

C) must run a budget surplus.

D) must run a balanced budget.

E) must set its purchases equal to private investment spending.

Reference no: EM13771627

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