If the economy is in an equilibrium with real GDP less than potential​ GDP, a fiscal stimulus could move the economy toward potential GDP by simultaneously​ ________ taxes and​ ________ government expenditures on goods and services.

A.raising; decreasing

B.raising; increasing

C. ​cutting; increasing

D. ​cutting; decreasing

E.raising; not changing

ANSWER:

C. ​cutting; increasing