Multiple Choice
If planned aggregate expenditure (PAE) in an economy equals 2,000 + 0.4Y and potential output (Y*) equals 3,500,then this economy has
A) an expansionary gap.
B) a recessionary gap.
C) no output gap.
D) an income-expenditure multiplier equal to 8.
E) an income-expenditure multiplier equal to 9.
Correct Answer:
Verified
Correct Answer:
Verified
Q52: In Macroland,autonomous consumption equals 100,the marginal propensity
Q53: In the basic Keynesian model where the
Q54: If planned aggregate expenditure in an economy
Q55: The key assumption of the basic Keynesian
Q56: Changes in taxes and transfer payments affect
Q58: As incomes go up,the<br>A) average propensity to
Q59: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB3713/.jpg" alt=" -Based on the
Q60: In the short-run Keynesian model,to close a
Q61: If planned aggregate expenditure equals 5,000 +
Q62: Consider the Canadian economy initially at potential