Suppose total planned expenditures by Canadian households substantially increased in response to changes in federal tax laws that resulted in a net tax reduction. From a short-run Keynesian perspective, the predicted effects of this event on the equilibrium Canadian price level and equilibrium Canadian real GDP were Part 2 A. an increase in the price level along with a decrease in equilibrium real GDP. B. an increase in the price level along with an increase in equilibrium real GDP. C. a decrease in the price level along with a decrease in equilibrium real GDP. D. a decrease in the price level along with an increase in equilibrium real GDP. Part 3 The resulting spending gap can best be described as Part 4 A. a recessionary gap. B. an inflationary gap. C. a full employment gap. D. a deflationary gap