Solved

Suppose Full Employment Real GDP Is $13 Trillion, Current Real

Question 134

Multiple Choice

Suppose full employment real GDP is $13 trillion, current real GDP is $13.2 trillion, and the marginal propensity to consume is 0.5. The inflationary gap is:


A) $0.2 trillion.
B) $0.05 trillion.
C) -$0.2 trillion.
D) $0.1 trillion.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q89: Keynes believed that saving is a function

Q94: If the marginal propensity to save is

Q130: In the nation of Economia, the economy

Q132: If real GDP at full employment is

Q133: If income is $5,000 per month and

Q135: Which of the following equations is correct?<br>A)

Q137: Which of the following equations is NOT

Q141: Investment spending<br>A) tends to be volatile.<br>B) is

Q187: In both the simple Keynesian model and

Q229: The recessionary gap is the increase in