Multiple Choice
If planned aggregate expenditure equals 5,000 + 0.55Y and potential output (Y*) equals 12,000,then this economy has a(n) __________ gap that can be closed by _________.
A) expansionary;increasing taxes
B) expansionary;increasing transfer payments
C) expansionary;increasing government purchases
D) recessionary;increasing government purchases
E) recessionary;increasing taxes
Correct Answer:
Verified
Correct Answer:
Verified
Q22: Suppose C = 100 + 0.5(Y -
Q23: The decision whether to change prices frequently,or
Q24: Suppose C = 100 + 0.75(Y -
Q25: For an economy starting at potential output,a
Q26: If planned aggregate expenditure (PAE)in an economy
Q28: If planned aggregate expenditure in an economy
Q29: Suppose C = 100 + 0.6(Y -
Q30: Data on output and planned aggregate expenditure
Q31: If consumption increases by $8 when disposable
Q32: Employment insurance payments and social assistance payments,acting