If the Equation for Planned Aggregate Expenditure Is Given by PAE

Multiple Choice

If the equation for planned aggregate expenditure is given by PAE = 5,000 + 0.9Y and potential output is equal to 48,000,then there is a(n) ________ gap equal to ________ units,so if net exports ________ by ________,the economy will return to potential output.

A) expansionary;2,000;decrease;200
B) expansionary;200;decrease;20
C) expansionary;5,000;increase;1,000
D) recessionary;2,000;increase;200
E) recessionary;200;increase;20