Assume the Economy Is in a Recession and the Federal

Multiple Choice

Assume the economy is in a recession and the federal government decides to cut personal income tax rates.All else equal,the cut in tax rates should

A) shift the IS curve to the right and move the output gap closer to zero.
B) shift the IS curve to the left and move the output gap farther away from zero.
C) shift up the MP curve and move the output gap closer to zero.
D) shift up the MP curve and move the output gap farther away from zero.