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

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

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter16: The Influence Of Monetary And Fiscal Policy On Aggregate Demand

Section: Chapter Questions

Problem 8PA

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