Answer:
Reduce; Recessionary
Explanation:
We need to emphasize the fact that fiscal policy is the use of government spending and tax policy to alter economy.
A recessionary gap can be defined as a microeconomic term which describes an economy operating at a level below its full employment equilibrium. Under a recessionary gap condition, the level of real gross domestic product GDP is lower than the level of full employment, which puts downwards pressure on prices in the long run.
