In an inflationary expenditure gap, the equilibrium level of real GDP is:
A. Greater than planned investment
B. Equal to full-employment GDP
C. Greater than full-employment GDP
D. Less than full-employment GDP
C. Greater than full-employment GDP
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A zero pollution level is not achievable because
A) corporations would lobby against it. B) it implies no production and no consumption. C) it implies an output level larger than that from a competitive market equilibrium. D) consumption would be larger than production.
If the price elasticity of demand for a good is 6, then a 3 percent decrease in price results in
a. a 20 percent increase in the quantity demanded. b. an 18 percent increase in the quantity demanded. c. a 2 percent increase in the quantity demanded. d. a 1.8 percent increase in the quantity demanded.
Which of the following would be better purchased from one who specializes in making them or producing them yourself?
a. A remote control b. spaghetti sauces c. strawberry jam d. chocolate chip cookies
Which of the following countries is least likely to have a dual economy?
A. Austria B. India C. Brazil D. South Africa