LRAS Price level SRAS P3 с PA A P2 B AD1 AD Yp Y, Real GDP per year Refer to the above graph. The economy is initially at output level Y1. To close the output gap with fiscal policy, policymakers should .
Refer to the above graph. The economy is initially at output level Y1. To close the output gap with fiscal policy, policymakers should A raise interest rates. B. increase government spending. С raise sales tax to encourage savings. D loosen environmental regulations to lower production costs.
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