Figure 9-4 ​

question 208

Multiple Choice

Figure 9-4
​
-If the amount that consumers wish to save at the full employment level of income is greater than the amount that businesses plan to invest, then

• A)there will be an inflationary gap.
• B)there will be a recessionary gap.
• C)total demand will exceed potential GDP.
• D)the economy will move to a higher level of output.

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Definitions:

Sampling Distribution

The probability distribution of a given statistic based on a random sample, used to make inferences about the population.

Standard Deviation

A statistical measure that quantifies the amount of variation or dispersion of a set of data values from the mean.

POM for Windows

POM for Windows is a software application designed to facilitate decision making in production and operations management by providing various analytical models.