Before the banking industry was deregulated, the interest rates that savings and loan institutions paid to depositors was fixed by the federal government

In the above figure, the distance between points T and U represents

A) an expansion. B) a trough. C) a peak. D) a recession.

Suppose real GDP is $12.6 trillion and potential GDP is $12.4 trillion. To move the economy back to potential GDP, Congress should

A) raise taxes by $200 billion. B) lower government purchases by an amount less than $200 billion. C) lower government purchases by $200 billion. D) raise taxes by an amount more than $200 billion. E) lower taxes by $200 billion.