(Table: Keynesian Equilibrium Analysis with Taxes and Net Exports) Given the data in the table, if full employment income is $1,000 while the current equilibrium is $750, _____ gap exists, such that _____ in aggregate expenditures equal to _____ is needed to close the gap.
A) an inflationary; a decrease; $100
B) an inflationary; an increase; $250
C) a recessionary; a decrease; $100
D) a recessionary; an increase; $250

Question

(Table: Keynesian Equilibrium Analysis with Taxes and Net Exports) Given the data in the table, if full employment income is $1,000 while the current equilibrium is $750, _____ gap exists, such that _____ in aggregate expenditures equal to _____ is needed to close the gap. 
A) an inflationary; a decrease; $100 
B) an inflationary; an increase; $250 
C) a recessionary; a decrease; $100 
D) a recessionary; an increase; $250

Quizplus · Accepted Answer

The Answer of (Table: Keynesian Equilibrium Analysis with Taxes and Net Exports) Given the data in the table, if full employment income is $1,000 while the current equilibrium is $750, _____ gap exists, such that _____ in aggregate expenditures equal to _____ is needed to close the gap. 
A) an inflationary; a decrease; $100 
B) an inflationary; an increase; $250 
C) a recessionary; a decrease; $100 
D) a recessionary; an increase; $250