This chapter shows that increased government purchases, with taxes held constant, can eliminate a contractionary gap. how could a tax cut achieve the same result? would the tax cut have to be larget than the increase in government purchases? why or why not?

This can be achieved through expansionary fiscal policy where an increase in government purchases, decrease in net taxes, or a combination of the two aimed at increasing aggregate demand enough to reduce unemployment and return the economy to its potential output where fiscal policy is used to close a recessionary gap.