Multiple Choice
Suppose the economy operates at potential output, if the amount that businesses plan to invest is greater than the amount that consumers plan to save, then
A) there will be an inflationary gap.
B) there will be a recessionary gap.
C) equilibrium GDP will be less than aggregate investment.
D) the economy will experience inventory accumulation.
Correct Answer:
Verified
Correct Answer:
Verified
Q176: If the expenditure schedule must be shifted
Q177: Figure 9-4<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8592/.jpg" alt="Figure 9-4
Q178: When net exports increase,<br>A)the expenditures schedule increases.<br>B)the
Q179: One of the main conclusions of Keynes
Q180: Economists before Keynes assumed that equilibrium GDP
Q182: The oversimplified multiplier formula assumes that the<br>A)level
Q183: Inventory reductions are a signal indicating that<br>A)the
Q184: The total expenditure schedule in Macroland begins
Q185: According to Baumol and Blinder, the real-world
Q186: Identify the "oversimplified multiplier formula."<br>A)Multiplier = 1