If full employment GDP is $1 trillion greater than equilibrium GDP,and there is a recessionary gap of $400 billion,the multiplier is
A) 1.
B) 2.5.
C) 4.
D) 5.
E) This is impossible to find with the information given.
Correct Answer:
Verified
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
Q11: Budget deficits are appropriate during
A)recessions,but not inflations.
B)inflations,but
Q12: Over the last four decades we have
Q13: We have an inflationary gap when
A)equilibrium GDP
Q14: If full employment GDP is $500 billion
Q15: The national debt passed the $2 trillion
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