A recessionary gap can be defined as:
A. an economy that is operating above its full-employment capacity.
B. an economy that is operating at full-employment capacity.
C. the amount by which aggregate expenditures exceeds the aggregate expenditures level needed to generate equilibrium real GDP at full employment without inflation
D. the amount by which aggregate expenditures falls short of the level needed to generate equilibrium real GDP at full employment without inflation.
Answer: D
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The investment function tells us, at any given interest rate
A) how many funds people will invest in the stock market. B) how many funds people will earn on their stock market investments. C) how profitable it will be for firms to expand. D) how much businesses will spend on adding to the capital stock.
Major U.S. exports include automobiles and aircraft
Indicate whether the statement is true or false
the multiplier is a value between zero and one
a. true b. false
Which region of the world experienced a decade-long crisis and stagnant or even negative growth rates during the 1980s?
A) Latin America B) East Asia C) The United States and Canada D) The European Union