Refer to the accompanying figure.
Based on the figure, if the economy is in short-run equilibrium with output equal to 16,000, then there is ________, and ________ could return the economy to potential output (Y*).
A. an expansionary gap; a decrease in autonomous expenditures of 4,000
B. a recessionary gap; an increase in autonomous expenditures of 1,000
C. a recessionary gap; an increase in autonomous expenditures of 4,000
D. an expansionary gap; a decrease in autonomous expenditures of 1,000
Answer: B
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