Refer to the Figure Below

question 19

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

---

Definitions:

Direct Effects

Immediate consequences or outcomes of an action, without intermediaries or secondary processes.

Realized Niche

The actual conditions and resources in which a species exists as a result of competition in its ecosystem.

Fundamental Niche

The potential mode of existence of a species given its adaptations, without considering the effects of competition or other biotic factors on its actual distribution.

Limiting Resources

Essential resources (such as food, water, and shelter) that are in short supply, limiting the growth, reproduction, or distribution of organisms.