If Leakages Are Greater Than Injections,equilibrium Output Will Be

question 32

Multiple Choice

If leakages are greater than injections,equilibrium output will be

• A)Less than full-employment output,and a recessionary gap will occur.
• B)Less than full-employment output,and an inflationary gap will occur.
• C)More than full-employment output,and a recessionary gap will occur.
• D)More than full-employment output, and an inflationary gap will occur.

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Definitions:

General Ledger

A comprehensive record of a company's financial transactions over the duration of its life, organized by accounts.

Accounts Receivable

Accounts receivable represents money owed to a company by its customers for goods or services that have been delivered or used but not yet paid for.

Subsidiary Accounts

Subsidiary accounts are detailed records that support or explain the balances in one or more general ledger accounts.

Control Account

A general ledger account that summarizes the total amounts recorded in subsidiary ledgers for individual components, like accounts receivable or payable.