Multiple Choice
Suppose full employment real GDP is $13 trillion, current real GDP is $13.2 trillion, and the marginal propensity to consume is 0.5. The inflationary gap is
A) -$0.2 trillion.
B) $0.05 trillion.
C) $0.1 trillion.
D) $0.2 trillion.
Correct Answer:
Verified
Correct Answer:
Verified
Related Questions
Q174: The slope of the saving schedule is<br>A)
Q175: Equilibrium income is reached when injections equal
Q176: The paradox of thrift suggests that when
Q177: Which of these is NOT true regarding
Q178: The recessionary gap is the spending reduction
Q180: If income rises from $10,000 to $20,000
Q181: The average propensity to consume is<br>A) always
Q182: Changes in technology are a determinant of
Q183: Changes in spending modify income by an
Q184: If the marginal propensity to consume is