4. On the graph below, what kind of output gap is shown? Inflationary LRAS Price Level SRAS AD Real GDP a. Is unemployment greater than or less than the natural rate? b. Is real GDP greater than or less than potential real GDP? w Questions 5. Answer the following based on the graph above: What type of fiscal policy is appropriate? (Expansionary or Contractionary) Should the government increase or decrease taxes? Should the government increase or decrease spending? Should the government run a surplus or a deficit? Tax revenue $32 000 000 and Government spending = $30 225 000