Multiple Choice
Figure 9-4
-If the amount that consumers wish to save at the full employment level of income is greater than the amount that businesses plan to invest, then
A) there will be an inflationary gap.
B) there will be a recessionary gap.
C) total demand will exceed potential GDP.
D) the economy will move to a higher level of output.
Correct Answer:

Verified
Correct Answer:
Verified
Q203: The recessionary gap is the<br>A)amount of unemployment
Q204: A higher price level would mean _
Q205: Government spending and private sector funding toward
Q206: The MPC in the U.S.economy has been
Q207: The inflationary gap is the<br>A)inflation rate that
Q209: Inventory reductions caused by strong demand are
Q210: An inflationary gap will exist when the
Q211: When aggregate demand exceeds current production<br>A)both output
Q212: Figure 9-3<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8592/.jpg" alt="Figure 9-3
Q213: If savings exceeds investment at full employment,