Multiple Choice
Which one of the following could cause an inflationary gap?
A) Net exports are decreasing.
B) Price levels are too low.
C) Government spending is too high.
D) Unemployment occurs.
Correct Answer:

Verified
Correct Answer:
Verified
Q20: When inventories accumulate, unemployment rises.
Q21: One of the possible consequences of the
Q22: The expenditure schedule includes the consumption function.
Q23: Table 9-1 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8592/.jpg" alt="Table 9-1
Q24: Investment spending<br>A)cannot be stimulated by decreasing the
Q26: Table 9-1 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8592/.jpg" alt="Table 9-1
Q27: If inventories are being depleted, firms may
Q28: The U.S.economy in 2009 was characterized by
Q29: Total output equals total income<br>A)in the income-expenditures
Q30: A recessionary gap exists when potential GDP<br>A)falls