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

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter16: Information, Risk, And Insurance

Section: Chapter Questions

Problem 12RQ: What is the problem of moral hazard?

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