Question: Home Question: Suppose that Y < Y(bar) , T < G and NX < 0. Using the large open economy model, illustrate and explain which

Home Question: Suppose that Y< Y(bar) , T < G and NX < 0. Using the large open economy model, illustrate and explain which policy mix can achieve the natural output level and a balanced budget, while eliminating the trade deficit

I understand that the first step is contractionary fiscal policy to move the IS curve inward, but that further reduces Y. I'm not sure what the next step is.

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