A recessionary output gap is defined to be when:
A. equilibrium aggregate expenditure is below full employment GDP.
B. equilibrium aggregate expenditure is equal to full employment GDP.
C. equilibrium aggregate expenditure is above full employment GDP.
D. government spending is insufficient causing a gap in GDP.
A. equilibrium aggregate expenditure is below full employment GDP.
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If you sell a $100,000 interest-rate futures contract for 110, and the price of the Treasury securities on the expiration date is 106, your ________ is ________
A) profit; $4000 B) loss; $4000 C) profit; $6000 D) loss; $6000
The wealth effect refers to
A) the impact of household real wealth on consumption, savings, and the IS curve. B) the impact of household real wealth on money, prices, and the LM curve. C) the impact of household real wealth on short term and long term interest rates. D) the impact of household real wealth on aggregate supply curve.
The Cournot model assumes that firm A maximizes its profit, holding firm B's output constant
What will be an ideal response?
Terms of trade indicate the purchasing power of a nation's exports
Indicate whether the statement is true or false