Multiple Choice
(Table: Keynesian Equilibrium Analysis with Taxes and Net Exports) Given the data in the table , if full employment income is $500 while the current equilibrium is $750, _____ gap exists, such that _____ in aggregate expenditures equal to _____ is needed to close the gap. 
A) an inflationary; a decrease; $100
B) an inflationary; an increase; $250
C) a recessionary; an increase; $100
D) a recessionary; a decrease; $250
Correct Answer:
Verified
Correct Answer:
Verified
Q89: (Table) When disposable income increases from
Q91: _ is the change in consumption associated
Q93: In the full aggregate expenditure model with
Q95: Expectations of a future general price increase
Q97: If the marginal propensity to save is
Q127: If the marginal propensity to consume is
Q139: In the simple Keynesian model, equilibrium occurs
Q166: Saving is zero when the economy is
Q182: Changes in technology are a determinant of
Q201: A horizontal investment schedule assumes that investment