Use the following to answer questions:
Figure: Policy Alternatives 
-(Figure: Policy Alternatives) Refer to Figure: Policy Alternatives. If the economy is in equilibrium at Y1 in panel (a) and the government decreases taxes, the result will likely be a(n) :
Definitions:
Blood Pressure
The force exerted by circulating blood on the walls of the body's arteries, a crucial indicator of cardiovascular health.
Physiological Arousal
A physical state of heightened alertness and energy, often in response to stimuli, involving bodily changes such as increased heart rate and muscle tension.
Peak Performance
The state at which an individual is performing to the best of their abilities, often under optimal conditions.
Sympathetic Nervous System
A part of the autonomic nervous system that prepares the body for quick response to stressful situations.
Q32: Decreasing funding for space exploration will shift
Q53: A negative supply shock raises production costs
Q82: An increase in aggregate demand is seen
Q87: (Figure: Inflationary and Recessionary Gaps) Refer to
Q113: (Figure: Inflationary and Recessionary Gaps) Refer to
Q157: If the government increases its borrowing, then
Q171: In a closed economy, national savings equals:<br>A)
Q180: (Figure: Inflationary and Recessionary Gaps) Refer to
Q194: An economic policy maker would rank a
Q263: Graphically, a recessionary gap is measured as