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Because GDP Must Be Divided Among Competing Demands in the Economy

Question 39

Multiple Choice

Because GDP must be divided among competing demands in the economy, we should expect:


A) increases in consumption to reduce net exports when the economy is in full employment.
B) increases in government expenditure to reduce private investment when the economy is in full employment.
C) increases in imports to reduce exports when the economy is in full employment.
D) increases in private saving to reduce private investment when the economy is in full employment.

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