In an inflationary expenditure gap, the equilibrium level of real GDP is
A. equal to full-employment real GDP.
B. greater than full-employment real GDP.
C. greater than planned investment.
D. less than full-employment real GDP.
Answer: B
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Define capital gains
What will be an ideal response?
A simple deposit multiplier equal to two implies a required reserve ratio equal to
A) 100 percent. B) 50 percent. C) 25 percent. D) 0 percent.
Which of the following characterizes long-run equilibrium in perfect competition?
A) P = MC = ATC B) P = MC < ATC C) P > MC = ATC D) P = MC > ATC
If the consumer's budget constraint is given by 4P + 2B = 50 where P is pizza and B is burgers, the following bundles of pizza and burger would be on the budget constraint:
A. P = 2; B = 24 B. P = 2; B = 21 C. P = 5; B = 10 D. P = 10; B = 20