Statement I: If equilibrium GDP is $6 trillion and full employment GDP is $6.5 trillion,we have a recessionary gap of $500 billion.
Statement II: In 1991 and 1992 we had recessionary gaps.
A) Statement I is true and statement II is false.
B) Statement II is true and statement I is false.
C) Both statements are true.
D) Both statements are false.
Correct Answer:
Verified
Q1: In the late 1970s and early 1980s
Q2: Which statement is true?
A)On occasion we have
Q4: Which statement is true about automatic stabilizers?
A)They
Q5: To close a recessionary gap we should
A)raise
Q6: When there is a recession,the biggest percentage
Q7: If equilibrium GDP is $1 trillion greater
Q8: Statement I: The federal budget deficit more
Q9: Most economists would agree that the national
Q10: If full employment GDP is $1 trillion
Q11: Budget deficits are appropriate during
A)recessions,but not inflations.
B)inflations,but
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