QUESTION 26 Price LRAS Level SRAS, SRAS P Pz AD Quantity of Output As shown with the figure above If the economy starts at a recessionary gap with two problems: Inflation and Unemployment: a. How would you define the possible causes of this problem? b. Explain how President Biden's proposal to increase taxes on high income would move this economy? c. Given that Biden's tax increase came true, what should the Fed do with monetary policy? d. Compare Fiscal and Monetary policies and their use by the authorities to stabilize the economy