Examlex
Which of the following statements is TRUE?
Multiplier
An economic factor that quantifies the additional economic activity generated from an initial injection of spending.
Equilibrium Real GDP
is the level of Gross Domestic Product where aggregate demand equals aggregate supply, resulting in a stable economy without inflationary or recessionary gaps.
Investment
The act of allocating resources, usually financial, with the expectation of generating an income or profit, such as purchasing stocks, bonds, or real estate.
Inflationary GDP Gap
A situation where actual gross domestic product exceeds the potential GDP, leading to upward pressure on prices and inflation.
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