If the Equation for Planned Aggregate Expenditure Is Given by PAE

question 82

Multiple Choice

If the equation for planned aggregate expenditure is given by PAE = 4,000 + 0.6Y and potential output is equal to 9000,then there is a(n) ________ gap equal to ________ units,so if net exports ________ by ________,the economy will return to potential output.

• A) expansionary;1,000;decrease;400
• B) expansionary;100;decrease;40
• C) expansionary;5,000;increase;2,000
• D) recessionary;1,000;increase;400
• E) recessionary;100;increase;40

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Definitions:

Stomach Acids

A mixture of hydrochloric acid, potassium chloride, and sodium chloride, which helps in the digestion of food within the stomach.

Cholecystokinin (CCK)

A hormone that stimulates the digestion of fat and protein.

Cholecystokinin

A hormone that stimulates the digestion of fat and protein by prompting the release of digestive enzymes and bile from the pancreas and gallbladder, respectively.

Secretin

A hormone that stimulates the secretion of digestive juices from the pancreas and bile from the liver into the small intestine.