In a recessionary expenditure gap, the equilibrium level of real GDP is:
A. Less than planned aggregate expenditures
B. Greater than planned aggregate expenditures
C. Greater than full-employment GDP
D. Less than full-employment GDP
D. Less than full-employment GDP
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Linder argues that trade is based on international similarities in preferences rather than international differences in costs of production
Indicate whether the statement is true or false
Action taken by the Fed to reduce the money supply will tend, all other things unchanged,
A) to reduce investment. B) to increase investment. C) to have no effect on net exports. D) to increase real GDP and the price level.
A university requires that all entering first-year students learn how to use word processing and spreadsheet software. This is an investment in what type of capital?
A. human B. productive C. financial D. tangible
If monetary policymakers fear a recession resulting from increased pessimism on the part of business people, and they want to avoid the recession, they would:
A. likely lower their target rate for inflation. B. shift the monetary policy reaction curve to the right. C. shift the monetary policy reaction curve to the left. D. encourage fiscal policymakers to act.