Multiple Choice
If leakages are greater than injections,equilibrium output will be
A) Less than full-employment output,and a recessionary gap will occur.
B) Less than full-employment output,and an inflationary gap will occur.
C) More than full-employment output,and a recessionary gap will occur.
D) More than full-employment output,and an inflationary gap will occur.
Correct Answer:

Verified
Correct Answer:
Verified
Q73: A rightward shift in an aggregate demand
Q74: One In the News article titled "Unemployment
Q75: There is a trade-off between unemployment and
Q76: Assuming an upward-sloping AS curve,if an economy
Q77: If the marginal propensity to consume is
Q79: Suppose an economy can be described by
Q80: Assume a decrease in interest rates causes
Q81: A basic conclusion of Keynesian analysis is
Q82: Suppose lower expectations lead to a
Q83: Suppose lower interest rates suddenly lead