During the start of an expansion, aggregate planned expenditure
A) exceeds real GDP.
B) decreases the magnitude of the expenditure multiplier.
C) increases the magnitude of the expenditure multiplier.
D) is slowly decreasing.
E) is less than real GDP.
A
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Refer to Figure 5-3. The efficient price of medical services is
A) $40. B) $55. C) $65. D) > $65.
What is an optimal decision?
What will be an ideal response?
In periods when GDP grows very rapidly for a long period, the actual unemployment rate will be ________ than the natural rate of unemployment.
A. lower B. higher C. the same D. more variable
An economy with an expansionary gap will, in the absence of stabilization policy, eventually experience a(n) ________ in the inflation rate, leading to a(n) ________ in output.
A. decrease; increase B. increase; increase C. decrease; decrease D. increase; decrease