Refer to the figure below. Based on the figure, if the economy is in short-run equilibrium with output equal to 24,000, then there is ______, and ______ could return the economy to potential output (Y*).
A)an expansionary gap; a decrease in autonomous expenditures of 1,000
B)an expansionary gap; a decrease in autonomous expenditures of 4,000
C)a recessionary gap; an increase in autonomous expenditures of 1,000
D)a recessionary gap; an increase in autonomous expenditures of 4,000

Question

Refer to the figure below.  Based on the figure, if the economy is in short-run equilibrium with output equal to 24,000, then there is ______, and ______ could return the economy to potential output (Y*).
A)an expansionary gap; a decrease in autonomous expenditures of 1,000 
B)an expansionary gap; a decrease in autonomous expenditures of 4,000 
C)a recessionary gap; an increase in autonomous expenditures of 1,000 
D)a recessionary gap; an increase in autonomous expenditures of 4,000

Quizplus · Accepted Answer

The Answer of Refer to the figure below.  Based on the figure, if the economy is in short-run equilibrium with output equal to 24,000, then there is ______, and ______ could return the economy to potential output (Y*).
A)an expansionary gap; a decrease in autonomous expenditures of 1,000 
B)an expansionary gap; a decrease in autonomous expenditures of 4,000 
C)a recessionary gap; an increase in autonomous expenditures of 1,000 
D)a recessionary gap; an increase in autonomous expenditures of 4,000

Refer to the Figure Below