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Fiscal policy

AP.MACRO: POL (BI), POL‑1 (EU), POL‑1.A (LO), POL‑1.A.1 (EK), POL‑1.A.2 (EK), POL‑1.A.3 (EK), POL‑1.A.4 (EK), POL‑1.A.5 (EK), POL‑1.A.6 (EK), POL‑1.A.7 (EK), POL‑1.B (LO), POL‑1.B.1 (EK)


Before experiencing the supply shock shown in this graph, Maxistan was in long-run equilibrium. The marginal propensity to consume (MPC) Maxistan is 0, point, 75.
Which of the following is a fiscal policy action that would be the best choice to return the economy to full employment output?
Choose 1 answer: