Suppose that the government spending multiplier is 2.5, and the tax multiplier is    -3.0. Real GDP is currently $25.0 trillion. Potential GDP is $23.5 trillion. If the government wishes to eliminate the existing output gap it could ____.

Real GDP Government Receipts Government Outlays $22.0 trillion $2.8 trillion $3.1 trillion $22.5 trillion $3.0 trillion $3.2 trillion $23.0 trillion $3.2 trillion $3.3 trillion $23.5 trillion $3.4 trillion $3.4 trillion $24.0 trillion $3.6 trillion $3.5 trillion Refer to the table above. When Real GDP equals $22.5 trillion, there is a government budget _____ of _____.

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