FIGURE 24-2 -Refer to Figure 24-2.Suppose the economy is in a short-run equilibrium at Y₁.An appropriate fiscal policy for closing the output gap is A)a decrease in personal income taxes. B)a decrease in government purchases. C)an increase in current interest rates. D)an increase in government purchases. E)a decrease in corporate income-tax rates.

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The Answer of FIGURE 24-2 -Refer to Figure 24-2.Suppose the economy is in a short-run equilibrium at Y₁.An appropriate fiscal policy for closing the output gap is A)a decrease in personal income taxes. B)a decrease in government purchases. C)an increase in current interest rates. D)an increase in government purchases. E)a decrease in corporate income-tax rates.

FIGURE 24-2 -Refer to Figure 24-2.Suppose the Economy Is in a Short-Run