b a recessionary gap Correct c no output gap d no autonomous expenditure

B a recessionary gap correct c no output gap d no

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b. a recessionary gap. Correct c. no output gap. d. no autonomous expenditure. Feedback The correct answer is: a recessionary gap. Question 17 Correct 2.75 points out of 2.75 Not flaggedFlag question Question text For an economy starting at potential output, an increase in autonomous expenditure in the short run results in a(n): Select one:
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a. expansionary output gap. Correct b. recessionary output gap. c. increase in potential output. d. decrease in potential output. Feedback The correct answer is: expansionary output gap. Question 18 Correct 2.75 points out of 2.75 Not flaggedFlag question Question text The recession of 2007-2009 happened in part because, after the housing bubble burst in 2006, the ensuing financial crisis: Select one: a. made it difficult for government to finance deficit spending. b. led to widespread inflation. c. increased the level of uncertainty about the future. Correct d. shifted the PAE line upward. Feedback The correct answer is: increased the level of uncertainty about the future. Question 19 Correct 2.75 points out of 2.75 Not flaggedFlag question Question text
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If planned aggregate expenditure (PAE) in an economy equals 3,000 + 0.75Y and potential output (Y*) equals 12,000, then this economy has: Select one: a. an expansionary gap. b. a recessionary gap. c. no output gap. Correct d. no autonomous expenditure. Feedback The correct answer is: no output gap. Question 20 Correct 2.75 points out of 2.75 Not flaggedFlag question Question text An economic expansion in the United States ______ the demand for exports from Mexico resulting in an increase in Mexican autonomous expenditures and a(n) ______ output gap in Mexico. Select one: a. reduces; expansionary b. increases; expansionary Correct c. reduces; recessionary d. increases; recessionary Feedback The correct answer is: increases; expansionary
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