Suppose that the economy of Monaco is represented by the aggregate demand (AD), shortrun aggregate supply (ERAS), LRAS and longrun aggregate supply (LRAS) curves in the accompanying graph. :1. Based on the graph, Monaco is O currently at longrun equilibrium. 0 experiencing a def'lationar},r gap- Aggregate price level 0 experiencing an inationary gap. 1]. Which of the following policies eliminate this Rea] GDP phenomenon '? 0 An increase government purchases of goods and services 0 A birth control subsidy O A cut in taxes 0 An increase in taxes 0 An increase in government transfers