Question: If short - run equilibrium output equals 2 0 , 0 0 0 and potential output ( Y * * ) equals 2 5 ,
If shortrun equilibrium output equals and potential output equals then this economy has an 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
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