Refer to the diagram. The change in aggregate expenditures as shown from (C + I g + X n1 ) to (C + I g + X n2 ) will produce:
A. a decrease in real GDP.
B. an inflationary expenditure gap if 0D is this nation's full-employment level of GDP.
C. an increase in real GDP if 0A is this nation's full-employment level of GDP.
D. an inflationary expenditure gap if 0B is this nation's full-employment level of GDP.
D. an inflationary expenditure gap if 0B is this nation's full-employment level of GDP.
You might also like to view...
If the required reserve ratio decreases, the:
A. money multiplier increases. B. money multiplier decreases. C. amount of excess reserves the bank has decreases. D. money multiplier stays the same.
A single firm in a contestable market is limited in the amount of economic profit it can earn because there
A) are barriers to entry. B) are no barriers to entry. C) is collusion. D) are government regulations limiting its profit.
Higher standards of living are the result of
a. government subsidies that expand employment. b. trade restrictions that favor domestic industries over foreign competition. c. an increase in the general level of prices. d. an increase in the availability of goods and services that people value.
A sure sign of the existence of an underground market for rent-controlled apartments in New York City is that
A. some apartments are subleased from the dead. B. apartment dealers work alongside drug dealers on its city streets. C. an open bribe must be paid to the mayor to get a rent-controlled apartment. D. rents are high.