29. If the economy were experiencing a recessionary gap, which of the options below shows an appropriate fiscal policy to eliminate the gap and the correct subsequent impacts on real GDP and unemployment? Fiscal Policy Real GDP Unemployment a. Increase taxes Increasea Decreases b. Decrease spending Decreases Increases c. Decrease taxes Increases Increases d. Increase money supply Increases Decreases e. Decrease taxes Increases Decreases Figure 7 LRAS Price Level SRAS PL PL3 AD3 PL2 AD 2 AD1 Yz Y3 Yp Real GDP 30. Which of the following combinations of changes in real GDP and price level in Figure 7 above shows the multiplier effect resulting from an application of fiscal policy made in an attempt to heal the effects of recession? Real GDP Price Level a. Y3 to Yp PL3 to PLI b. Y2 to Yp PL2 to PLI c. Y2 to Y3 PLI to PL3 d. Yp to Y2 PLI to PL2 e. Y3 to Y2 PL3 to PL2