Which of the following fiscal policy actions can effectively help close a recessionary gap? Select all that apply.

To close a recessionary gap, the government can use fiscal policy actions like increasing spending or cutting taxes. When the government spends more money, it creates jobs and boosts demand for goods and services, which helps people earn more and spend more. For example, if the government builds a new highway, it not only employs construction workers but also helps businesses nearby by making it easier for customers to reach them. Similarly, if taxes are lowered, families have more money to spend on things they need, which can stimulate the economy. Both of these actions aim to increase overall economic activity and reduce unemployment during a recession.