If planned aggregate expenditure is above potential GDP and planned aggregate expenditure equals GDP, then
A) the economy is in an expansion.
B) actual inventory investment will be less than planned inventory investment.
C) actual inventory investment will be greater than planned inventory investment.
D) the economy is at full employment.
A
You might also like to view...
The natural rate of unemployment consists of frictional unemployment plus cyclical unemployment
Indicate whether the statement is true or false
Refer to the information provided in Figure 26.4 below to answer the question(s) that follow.
Figure 26.4Refer to Figure 26.4. Which of the following causes the economy to move from Point A to Point E?
A. an increase in the price level B. technological progress C. an influx of immigrants D. an oil embargo that increases the price of oil
Individuals who lease a new car
A) have a higher discount rate than those who buy. B) have a lower discount rate than those who buy. C) have the same discount rate as those who buy. D) behave irrationally and are taken advantage of by car companies.
A Social Security system in which payroll taxes that workers and their employers pay in go directly to retirees and other beneficiaries is known as
A. a primary-deficit system. B. a pay-as-you-go system. C. an individual-account system. D. a social-lockbox system.