If planned aggregate expenditure (PAE) in an economy equals 5,000 + 0.48Y and potential output (Y*) equals 9,000,then this economy has
A) an expansionary gap.
B) a recessionary gap.
C) no output gap.
D) an income-expenditure multiplier equal to 8.
E) an income-expenditure multiplier equal to 9.
Correct Answer:
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