CHART OF THE DAY: Goldman Shows What Happens If We Fly Off The Fiscal Cliff

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How big of a hit would the economy take if we flew off the fiscal cliff?

A new note from Goldman’s Alec Phillips walks through various scenarios ranging from everything extended (all stimuli and tax cuts) to everything expires (all the spending cuts and tax hikes kick in).

The worst case scenario: If everything expires, and we runs straight off the fiscal cliff, a hit of about 4% to GDP.

chart of the day, Effect of Federal, State And Local Fiscal Policy On GDP Growth*

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