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If the Full Employment Level of Income Is $1200 Billion

Question 86

Multiple Choice

If the full employment level of income is $1200 billion and the present level of income is $1000 billion


A) an inflationary gap exists
B) autonomous expenditure is too low for a full employment equilibrium
C) autonomous expenditure is too high for a full employment equilibrium
D) a decrease in autonomous expenditure is required
E) government purchases of goods and services should be reduced

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