Consider the following$$ statement:

$"$Real GDP is currently$$ $$27\mathrm{.}7$ trillion, and potential real GDP is$$ $$27\mathrm{.}4$ trillion. If Congress and the president would decrease government purchases by$$ $$300$ billion or increase taxes by$$ $$300$ billion, the economy could be brought to equilibrium at potential$$ GDP$."$

Part $2$

If government purchases were to decrease by$$ $$300$ billion or if taxes were increased by$$ $$300$ billion, the equilibrium level of real GDP would decrease by

Part $3$

A$.$

more than$$ $$300$ billion.

B$.$

less than$$ $$300$ billion.

C$.$

exactly$$ $$300$ billion.

D$.$

None of the$$ above; equilibrium real GDP would actually increase.

Part $4$

$$Therefore$,$ the statement above is

incorrect

correct

incorrect

$.$