If Short-Run Equilibrium Output Equals 50,000 and Potential Output (Y*)equals

question 110

Multiple Choice

If short-run equilibrium output equals 50,000 and potential output (Y*) equals 45,000, then this economy has a(n) ________ gap that can be closed by ________.

• A)expansionary; decreasing taxes
• B)expansionary; increasing transfer payments
• C)expansionary; decreasing government purchases
• D)recessionary; increasing government purchases

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Definitions:

Neutrophils

A type of white blood cell that plays an essential role in the immune system by engulfing and destroying pathogens.

Fungal Infection

An infection caused by a fungus, which can affect the skin, nails, or internal organs, leading to a variety of symptoms.

Hematocrit

The proportion of blood volume that is occupied by red blood cells, a key indicator of blood health and function.

Hemoglobin

A molecule found in red blood cells that is tasked with carrying oxygen from the lungs to various parts of the body.