Refer to the diagram. If the full-employment level of GDP is B and aggregate expenditures are AE 1 , the:
A. inflationary expenditure gap is BC.
B. recessionary expenditure gap is BC.
C. inflationary expenditure gap is zero.
D. inflationary expenditure gap is ei.
D. inflationary expenditure gap is ei.
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An investment is profitable as long as its internal rate of return is equal to the rate of interest
Indicate whether the statement is true or false
The producer's surplus is equal to the difference between how much the seller can charge for a product and how much the consumer is willing to purchase it for
a. True b. False Indicate whether the statement is true or false
Most Americans agree that
A. a certain amount of income redistribution is called for. B. absolutely no income redistribution should be carried out. C. we need completely equal distribution of income.
Consumption will generally decrease when the income tax rate ________ or transfer payments ________.
A. increases; increase B. increases; decrease C. decreases; increase D. decreases; decrease