In a diagram of aggregate demand and supply curves,the GDP gap is measured as the
A) Horizontal distance between the equilibrium output and the full-employment output.
B) Vertical distance between the equilibrium price and the price at which the aggregate demand would intersect aggregate supply at full employment.
C) Horizontal distance between the aggregate demand necessary to achieve full employment and the aggregate demand curve at equilibrium output.
D) Vertical distance between the equilibrium output and the full-employment output.
Correct Answer:
Verified
Q7: Fiscal policy works primarily through
A)Shifts of the
Q8: Keynesians would recommend
A)Higher taxes when there is
Q9: The use of government taxes and spending
Q10: From a Keynesian perspective,the way out of
Q11: The U.S.government was given the power to
Q13: Assume the economy is operating below full
Q14: Which of the following is an income
Q15: Which of the following is generally considered
Q16: According to Keynes,the level of economic activity
Q17: Today the federal government collects nearly
A)$1 billion
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