You are the Secretary of the Treasury, working with the president to implement appropriate policies. Currently, actual GDP is below potential output and falling. To stabilize the economy, you'd recommend _____ fiscal policy, which could include _____. Question 5 options: a) contractionary; increased government purchases and tax cuts b) expansionary; decreased government purchases and a tax increase c) contractionary; decreased government purchases and a tax increase d) expansionary; increased government purchases and tax cuts