When the aggregate expenditure curve is above the 45 degree line:
A) there will be excess demand in the economy and GDP will increase
B) there will be insufficient demand in the economy and GDP will decrease
C) there will be insufficient demand in the economy and GDP will increase
D) there will be excess demand in the economy and GDP will decrease
Correct Answer:
Verified
Q2: If an increase in the level of
Q3: The ratio of the change in the
Q4: The fraction of a change in income
Q5: Which of the following is NOT a
Q6: The MPW is:
A) the ratio of income
Q8: If an economy's MPC is 0.7, then
Q9: Which of the following is NOT a
Q10: Structural unemployment is the:
A) unemployment that results
Q11: If an economy's MPC is 0.8, then
Q12: When total injections are less than total
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