When economy below full employment, fiscal action to restore equilibrium:

Raising taxes decreases disposable income for consumers and businesses, which typically leads to reduced spending and investment. This action would further contract economic activity, exacerbating unemployment and moving the economy further away from full employment rather than restoring equilibrium.

Cutting spending by either the government or consumers reduces overall demand in the economy. This contraction leads to lower production levels and potentially higher unemployment, hindering recovery efforts and moving the economy further from full employment rather than helping to restore it.

Increasing the reserve ratio requires banks to hold a larger percentage of deposits as reserves, limiting the amount available for lending. This contractionary monetary policy restricts the money supply, leading to decreased investment and consumer spending, which can stifle economic growth and prolong periods of unemployment.