If the economy experiences a recessionary gap then:
a. aggregate expenditures exceed the level of spending necessary to provide for full employment.
b. Keynesian economics would recommend a reduction in government spending or an increase in taxes.
c. Keynesian economics would recommend an increase in government spending or a decrease in taxes.
d. the equilibrium level of output and income is above full employment.
c
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In the United States, imports have exceeded exports in every year since 1960
a. True b. False
One of the important sources of income for a commercial bank is: a. the interest paid to its depositors
b. the loan that is not repaid. c. the charge imposed on the use of a debit card. d. the tax paid to the government.
Adjusting nominal Gross Domestic Product (GDP) for price changes from a base year yields
A. current Gross Domestic Product (GDP). B. real Gross Domestic Product (GDP). C. Gross Domestic Product (GDP) net of relative price changes. D. constant disposable income.
The type of contract selected depends on the information available to the parties
What will be an ideal response?