The recessionary gap is the increase in aggregate spending needed to bring a depressed economy back to full employment.
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Q35: When withdrawals equal injections, the economy
A) is
Q36: A depression economy has considerable slack; therefore
A)
Q37: If the interest rate increases, investment will
A)
Q38: Assume that the MPC is 0.8, full
Q39: If the marginal propensity to consume is
Q41: The marginal propensity to consume is equal
Q42: Classical economists claim that _ is the
Q43: The GDP gap divided by the multiplier
Q44: Income rises when desired investment is
A) greater
Q45: In the Keynesian framework, the way to
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