These are for my final exam

2. Suppose an economy is Initially in equilibrium at potential GDP, '1\". Then the government decreases the net tax rate it). a. Briefly explain in words {12 sentences without a diagram] What type of gap would be caused by this policy AND the impact on real GDP and the price level in the shortrun. b. Briefly explain in words {12 sentences with no diagram] how the economy adjusts back to the long run equilibrium if left alone and no further scal or monetary policy is used. c. In going from the short run equilibrium to the longrun equilibrium, briefly explain [1 sentence] how the composition of real GDP may haye changed. d. Briefly explain what the difference in the growth rate of potential GDP might occur If instead of a decrease in the net tax rate, there was an increase in government purchases {1 sentence}. d. Briefly explain what the difference in the growth rate of potential GDP might occur If instead of a decrease in the net tax rate, there was an increase in government purchases (1 sentence). e. Briefly explain (1-2 sentences without a diagram) what the "Money Neutrality" argument implies about the effectiveness of discretionary fiscal policy and the impact on potential real GDP and price level in the long run