In a Certain Economy,the Components of Planned Aggregate Expenditure Are

Multiple Choice

In a certain economy,the components of planned aggregate expenditure are given by:
C = 60 + 0.6 (Y - T) - 1,000r
I = 200 - 1,000r
G = 200
NX = 50
If potential output equals 925,net taxes equal 100 and the central bank sets the interest rate equal to 0.05 (5%) ,then at the short-run equilibrium,there is a(n) ________ gap of ________.

A) expansionary;50
B) expansionary;100
C) recessionary;150
D) recessionary;100
E) recessionary;50