Suppose that potential GDP = 500, & close the output gap, government. Should change it's taxes by how much?. . Increase I by Ho C. Increase I by 25 P Pla PL Pho b. Decrease I by 20 d. Decrease I by 25 e. None of the above. LRAS E3 Ez ... I I I Y YWR Y E -77 -SRASI SRAS AD AD RGDP 17 Refer & the figure. At what short. run equilibrium point expansionary Fiscaal Policies make sense & help stablize the . E. economy?. br E C- E d. Es Refer & the figure. If economy is in equilibrium at full employment real. Gop, what is the new equilibrium point if there is a simultaneous increase in in Come taxes & a decrease in the price of inputs & the effect of these two factors is equal?. 2. E. b. E C. E d. Es 9 Refer & the figure. If economy is Currently at equilibrium beyond full employment y neither the bank Feds Nor the government took any action, what will be the long run Equilibrium? . E. b. E1 C-E D. E3