Multiple Choice
An economy is at full employment. Which of the following events can create a recessionary gap?
A) an increase in taxes
B) a decrease in the quantity of capital
C) a decrease in money wages
D) an increase in foreign income
Correct Answer:

Verified
Correct Answer:
Verified
Related Questions
Q114: Economic growth in India has averaged about
Q125: The quantity of real GDP demanded equals
Q126: A decrease in the money wage rate<br>A)
Q127: Last year in the country of Union,
Q129: Aggregate demand in India increased in 2008.
Q131: A short- run macroeconomic equilibrium occurs<br>A) when
Q132: For movements along the long- run aggregate
Q133: Which of the following variables does NOT
Q134: In the macroeconomic short run,<br>A) actual real
Q135: According to the intertemporal substitution effect, a