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    Exam 10: Self-Adjustment or Instability
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    If Equilibrium GDP Exceeds Full-Employment GDP
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If Equilibrium GDP Exceeds Full-Employment GDP

Question 121

Question 121

Multiple Choice

If equilibrium GDP exceeds full-employment GDP,


A) The difference is the recessionary GDP gap.
B) The difference is the inflationary GDP gap.
C) Inventories will accumulate.
D) Leakages must be greater than injections.

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