Using Figure 3 above the distance between what 2 lines illustrate a recessionary expenditure gap?
A. Y1 to Y2
B. PAE1 to PAE2
C. PAE2 to PAE3
D. Y2 to Y3
Answer: B
You might also like to view...
A 14 year old boy who works in a bakery shop is a part of the labor force
a. True b. False Indicate whether the statement is true or false
Angela reads financial advice columns and concludes the following. Which, if any, of her conclusions are incorrect?
a. Higher average returns come at the price of higher risk. b. People who are risk averse should never hold stock. c. Diversification cannot eliminate all of the risk in stock portfolio. d. None of her conclusions are incorrect.
Dumping refers to a country selling its exports at a price lower than its selling price at home.
Answer the following statement true (T) or false (F)
Money illusion is
A) when people think they are better off when their income increases even though prices have increased by the same amount. B) when people are motivated by self-interest. C) could not exist if the economy did not have competitive markets. D) a basic condition that all classical economists assume people have.