Multiple Choice
A recessionary expenditure gap exists if
A) planned investment exceeds saving at the full-employment GDP.
B) the aggregate expenditures schedule lies below the 45-degree line at the full-employment GDP.
C) the aggregate expenditures schedule intersects the 45-degree line at any level of GDP.
D) the aggregate expenditures schedule lies above the 45-degree line at the full-employment GDP.
Correct Answer:
Verified
Correct Answer:
Verified
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