A recessionary expenditure gap is:
A. the amount by which the full-employment GDP exceeds the level of aggregate
expenditures.
B. the amount by which equilibrium GDP falls short of the full-employment GDP.
C. the amount by which investment exceeds saving at the full-employment GDP.
D. the amount by which aggregate expenditures exceed the full-employment level of GDP.
A. the amount by which the full-employment GDP exceeds the level of aggregate
expenditures.
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In the long run, all inputs are variable
Indicate whether the statement is true or false
In the open-economy macroeconomic model, the supply of loanable funds comes from
a. the sum of domestic investment and net capital outflow. b. the sum of national saving and net capital outflow. c. national saving. d. net exports
In which section of the United States are "right-to-work" laws most prominent?
A. The Northeast B. The West coast C. The South D. The Midwest
Explain why some firms may suffer diseconomies of scale.
What will be an ideal response?