Which one of the following could cause an inflationary gap?
A) Net exports are decreasing.
B) Price levels are too low.
C) Government spending is too high.
D) Unemployment occurs.
Correct Answer:
Verified
Q109: Assume a simple macroeconomic model.When inventories rise
Q110: The recessionary gap is the
A)amount of unemployment
Q111: An expenditure schedule that lies below the
Q112: In a simple economy (no government), the
Q113: One of the possible consequences of the
Q115: When the expenditure level is above the
Q116: The economy will reach equilibrium in a
Q117: Keynes focused on problems of
A)hyperinflation.
B)budget deficits.
C)trade deficits.
D)unemployment
Q118: One of the main conclusions of Keynes
Q119: If the expenditure schedule must be shifted
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