12. If the current level of real GDP is $500 billion and the economy's potential level of real GDP is $1 trillion, what is the resulting size and type of the output gap? Size of the Output Gap Type of Output Gap a. $0 None b. -$200 billion Recessionary c. -$500 billion Recessionary d. $200 billion Expansionary e. $500 billion Expansionary 13. Which of the following serve as examples of automatic stabilizers (i.e. non-discretionary fiscal policies) for the macroeconomy? I. An annual personal income tax that is assessed as a % of overall earnings II. An annual "lump-sum" income tax of $20,000, regardless of how income has changed III. Unemployment benefits IV. A legislative change to welfare qualification a. I and III only b. II and IV only c. I, II and III only d. II, III and IV only e. I, II, III and IV of 8AS12 gorolls Figure 3 mundiflugo now mode won a log co. LRAS 9noo sar blacks Inammovog sifT b Price Level SRAS PLI YI Yp Real GDP 14. Which of the following best describes what the economy is experiencing in Figure 3 above? a. A recession created by a negative demand shock b. A recession created by a negative supply shock c. Short-run expansion created by a positive demand shock d. Short-run expansion created by a positive supply shock e. Cannot be determined with the above information