Figure 9-4
?

In Figure 9-4, which expenditure level will result in a recessionary gap?

A. 1
B. 2
C. 3
D. There will be no deflationary gap.


Answer: C

Economics

You might also like to view...

According to economic theory what is the optimal percentage of GDP to be spent on medical care?

a. 6 percent. b. 8 percent. c. 10 percent. d. 12 percent. e. There is no widely-accepted way to determine the optimal percentage.

Economics

When there are diseconomies of scale in production:

a. long-run average total cost declines as output expands. b. long-run average total cost increases as output expands. c. average fixed cost increases as output expands d. marginal cost decreases as output expands.

Economics

Evidence suggests that business owners are generally

a. interested in profits only when discrimination is illegal. b. more interested in discrimination than in making a profit. c. unable to determine the link between discrimination and profitability. d. more interested in making a profit than in discriminating against a particular group.

Economics

Ceteris paribus, if buyers expect the price of airline tickets to fall in the future, then right now there should be

A. A decrease in the supply of airline tickets. B. No change in the supply of or demand for airline tickets because the price is not changing right now. C. A decrease in the demand for airline tickets. D. An increase in the demand for airline tickets.

Economics