The Great Recession of 2007-2009 represented the most significant economic activity since the Great Depression. Please identify the type of gap that existed in U.S. economy as well as the fiscal and monetary policy tools that could help to close this gap and bring the U.S. economy back to its potential output.

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The Great Recession of 20072009 led to a significant output gap in the US economy This type of gap i... View the full answer