The following equations describe a closed economy, where Y* is potential GDP. C = 10+0.8(Y-T) I^P= 240 G = 60 T = 50 Y* = 1,500 To close the output gap in this economy, what is the required change in government expenditure? Question 7 Select one: a. increase in G of 30. b. increase in G of 52. c. decrease in G of 120. d. decrease in G of 58. e. decrease in G of 150