Multiple Choice
If planned aggregate expenditure (PAE) in an economy equals 2,000 + 0.48Y and potential output (Y*) equals 4,000,then this economy has
A) an expansionary gap.
B) a recessionary gap.
C) no output gap.
D) an income-expenditure multiplier equal to 5.
E) an income-expenditure multiplier equal to 9.
Correct Answer:
Verified
Correct Answer:
Verified
Q9: If firms sell less output than expected,planned
Q10: Suppose C = 100 + 0.6(Y -
Q11: Economists tend to be critical of any
Q12: If disposable income decreases,the average propensity to
Q13: The two parts of the Keynesian consumption
Q15: In the real world,investments in public capital,such
Q16: In the basic Keynesian model,an increase in
Q17: The basic Keynesian model shows that,as far
Q18: If planned aggregate expenditure (PAE)in an economy
Q19: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB3713/.jpg" alt=" -Based on the