The figure below shows an AD/AS model for a hypothetical economy which is initially in a short-run equilibrium at point A. FIGURE 24-6 Refer to Figure 24-6. The government could close the existing output gap by, other things being equal: Question 6 options: A) decreasing government transfer payments. B) increasing government spending. C) increasing the net tax rate. D) decreasing government spending. E) balancing an increase in transfer payments with an increase in tax rates so that net tax revenues remain the same