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In an Open Mixed Economy, the Inflationary Expenditure Gap May

Question 165

Multiple Choice

In an open mixed economy, the inflationary expenditure gap may be described as the


A) excess of GDP over Ca + Ig + Xn + G at the full-employment output.
B) excess of Sa + M + T over Ig + X + G at the full-employment GDP.
C) extra consumption that occurs when investment increases in a full-employment economy.
D) excess of Ca + Ig + Xn + G at the full-employment GDP.

Correct Answer:

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