(Figure: Saving, Investment, Government Spending, and Net Exports) in the Graph

Multiple Choice

(Figure: Saving, Investment, Government Spending, and Net Exports) In the graph above, if full employment income is $1,000 while the current equilibrium is $750 at point a, _____ 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