Question: If short - run equilibrium output equals 2 0 , 0 0 0 and potential output ( Y * * ) equals 2 5 ,

If short-run equilibrium output equals 20,000 and potential output (Y**) equals 25,000, then this economy has a(n) gap that can be closed by
Select one:
a. recessionary; increasing taxes
b. expansionary; increasing transfer payments
c. recessionary; increasing government purchases
d. expansionary; increasing government purchases
 If short-run equilibrium output equals 20,000 and potential output (Y**) equals

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