Solved

Complete Table 9  Table 9.2\text { Table } 9.2 If the Full-Employment Level of Income (YF)in Table 9

Question 81

Multiple Choice

Complete Table 9.2.(Data are expressed in billions of dollars.)  Full Employment  Consumers  Investors Desire  Total Private  Income (Output)   Desire to Spend  to Spend  Spending  Total Saving $500$300$250$___$___600375250$___$___700450250$___$___800525250$___$___\begin{array}{cccc}\text { Full Employment } & \text { Consumers } & \text { Investors Desire } & \text { Total Private } \\\text { Income (Output) } & \text { Desire to Spend } & \text { to Spend } & \text { Spending }&\text { Total Saving }\\\hline\$ 500 & \$ 300 & \$ 250&\$\_\_\_&\$\_\_\_ \\600 & 375 & 250&\$\_\_\_&\$\_\_\_ \\700 & 450 & 250&\$\_\_\_&\$\_\_\_ \\800 & 525 & 250&\$\_\_\_&\$\_\_\_\end{array}

 Table 9.2\text { Table } 9.2 If the full-employment level of income (YF) in Table 9.2 is $800 billion,


A) The economy is in equilibrium.
B) There is a recessionary gap of $25 billion.
C) There is an inflationary gap of $250 billion.
D) There is a recessionary gap of $275 billion.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents