14. Refer to the accompanying figure. PAE = 1,000 + 0.75Y 4,750 4,000 3,250 1,000 45° 3,000 4,000 5,000 Output, Y Based on the Keynesian cross diagram, at short-run equilibrium output, A. there is a recessionary gap. B. there is an expansionary gap. C. output equals potential output. D. firms will be producing more than they can sell. Planned Aggregate Expenditure, PAE

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