Multiple Choice
When there is excess aggregate demand in the economy,
A) Desired fiscal restraint equals the AD excess divided by the multiplier.
B) The GDP gap is positive.
C) Full-employment output is higher than equilibrium output.
D) Full-employment output is less than equilibrium output.
Correct Answer:
Verified
Correct Answer:
Verified
Q87: Assume the MPC is 0.75.To eliminate an
Q88: If aggregate demand increases by the amount
Q89: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5720/.jpg" alt=" Refer to Figure
Q90: How does the slope of the AS
Q91: Payments for unemployment benefits sent to unemployed
Q93: The use of government taxes and spending
Q94: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5720/.jpg" alt=" Refer to Figure
Q95: The balanced budget multiplier says that<br>A)An increase
Q96: Which of the following is a policy
Q97: The ranking of the size of tax