Solved

(Table: Keynesian Equilibrium Analysis with Taxes and Net Exports) Given

Question 55

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, a(n) _____ gap exists, such that a(n) _____ in spending equal to _____ is needed to close the gap. (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, a(n) _____ gap exists, such that a(n) _____ in spending equal to _____ is needed to close the gap. A) inflationary; decrease; $100 B) inflationary; decrease; $250 C) recessionary; increase; $100 D) recessionary; increase; $250


A) inflationary; decrease; $100
B) inflationary; decrease; $250
C) recessionary; increase; $100
D) recessionary; increase; $250

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q50: Assume that the economy is at equilibrium

Q51: If the marginal propensity to consume (MPC)

Q52: During the Y2K scare of 2000, Rufus

Q53: The 45-degree line in the Keynesian model

Q54: Which statement is correct?<br>A) Keynesian economics is

Q56: If income is $22,150 and taxes are

Q57: The multiplier works for increases in spending

Q58: In the simple Keynesian model with no

Q59: In the simple Keynesian model, if people

Q60: If income rises from $10,000 to $20,000