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Refer to the Diagram (C+Ig+Xn)\left( \mathrm { C } + I _ { g } + X _ { n } \right)

Question 101

Multiple Choice

   Refer to the diagram. The change in aggregate expenditures as shown from  \left( \mathrm { C } + I _ { g } + X _ { n } \right)   to  \left( \mathrm { C } + I _ { g } + \right.   X _ { n 2 }  )  will produce A)  a decrease in real GDP. B)  an in?ationary expenditure gap if 0D is this nation's full-employment level of GDP. C)  an increase in real GDP if 0A is this nation's full-employment level of GDP. D)  an in?ationary expenditure gap if 0B is this nation's full-employment level of GDP. Refer to the diagram. The change in aggregate expenditures as shown from (C+Ig+Xn) \left( \mathrm { C } + I _ { g } + X _ { n } \right) to (C+Ig+\left( \mathrm { C } + I _ { g } + \right. Xn2X _ { n 2 } ) will produce


A) a decrease in real GDP.
B) an in?ationary expenditure gap if 0D is this nation's full-employment level of GDP.
C) an increase in real GDP if 0A is this nation's full-employment level of GDP.
D) an in?ationary expenditure gap if 0B is this nation's full-employment level of GDP.

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