Multiple Choice
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
Correct Answer:
Verified
Correct Answer:
Verified
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