Question: Please help! 3. (15 pts) (a) Why is knowing the level of potential output important to designing appropriate fiscal policy? (b) Using Aggregate Demand and

Please help!

3. (15 pts) (a) Why is knowing the level of potential output important to designing appropriate fiscal policy? (b) Using Aggregate Demand and Supply curves, graphically illustrate a situation in which expansionary fiscal policy could be helpful to a national economy. Briefly explain. (c) Using Aggregate Demand and Supply curves, graphically illustrate a situation in which the same expansionary fiscal policy could be damaging to a national economy. Briefly explain

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