88. Refer to the figure above. If planned aggregate expenditure (PAE) In an economy equals 2,000+.8Y and potential output (Y*") equals 11,000, then this economy has: A. an expansionary gap. B. a recessionary gap. C. no output gap. D. no autonomous expenditure.

88. Refer to the figure above. If planned aggregate expenditure (PAE) In an economy equals 2,000+.8Y and potential output (Y*") equals 11,000, then this economy has: A. an expansionary gap. B. a recessionary gap. C. no output gap. D. no autonomous expenditure.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter17: Financial Markets

Section: Chapter Questions

Problem 30CTQ: Explain how a company can fail when the safeguards that should be in place fail.

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Question

PAE
Y* PAE
PAE 6,000 75Y
PAE 6,000 75Y
PAE 4,000 75Y
6,000
5.000
4,000
16 20
Frank Chapter 21

88.
Refer to the figure above. If planned aggregate expenditure (PAE) In an economy equals
2,000 +.8Y and potential output (Y") equals 11,000, then this economy has:
A. an expansionary gap.
B. a recessionary gap.
C. no output gap.
D. no aulonomous expenditure.

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