Refer to the figure above. Based on the figure, If the economy is in short-run equilibrium with output equal to 16,000, then there is a(n). gap and a ,In government spending would retum the economy to potential output (Y"). A. expansionary; 1,000 decrease B. expansionary: 4,000 decrease C. recessionary: 1,000 increase D. recessionary: 4.000 increase

Refer to the figure above. Based on the figure, If the economy is in short-run equilibrium with output equal to 16,000, then there is a(n). gap and a ,In government spending would retum the economy to potential output (Y"). A. expansionary; 1,000 decrease B. expansionary: 4,000 decrease C. recessionary: 1,000 increase D. recessionary: 4.000 increase

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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