Refer to the Accompanying Figure

question 22

Multiple Choice

Refer to the accompanying figure. Based on the figure, if the economy is in short-run equilibrium with output equal to 16,000, 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:

Accepted Insiders

Individuals or groups within an organization or community who are recognized and welcomed due to their status, contribution, or involvement.

Outsiders

Individuals who are not part of a specific group or organization, often viewed from the perspective of those within the group.

Effectiveness

The degree to which something is successful in producing a desired result or outcome.

Speedy Transport

refers to the rapid movement of goods or individuals from one location to another, often emphasizing efficiency and minimal delay.