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

Economics

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In the United States, imports have exceeded exports in every year since 1960

a. True b. False

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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.

Economics

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.

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The type of contract selected depends on the information available to the parties

What will be an ideal response?

Economics