Refer to the Accompanying Figure

question 8

Multiple Choice

Refer to the accompanying figure. 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

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Definitions:

Task Groups

Collections of individuals brought together to accomplish a specific job, project, or assignment within a limited timeframe.

Formal Groups

Collections of individuals brought together within an organization to achieve specific goals with defined roles and structures.

Clique

A small, exclusive group of individuals with shared interests or common goals, often perceived as isolating themselves from others.

Person-To-Person

Direct interaction or communication between two or more individuals.