Arrange the following fiscal policy actions in the order they should be implemented to effectively address a recessionary gap: A) Increase government spending, B) Decrease taxes, C) Raise transfer payments, D) Monitor economic indicators.

To effectively address a recessionary gap, the first step is to monitor economic indicators. This helps identify the severity of the recession and understand how much action is needed. Once the situation is clear, the next step is to increase government spending, as this injects money directly into the economy and creates jobs. Following that, decreasing taxes can help put more money in people's pockets, encouraging them to spend more. Lastly, raising transfer payments, like unemployment benefits, provides support to those who need it most, helping to stimulate demand and further boost the economy.