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(Figure: Saving, Investment, Government Spending, and Net Exports) in the Graph

question 245

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(Figure: Saving, Investment, Government Spending, and Net Exports) In the graph above, if full employment income is $500 while the current equilibrium is $750 at point a, _____ gap exists, such that _____ in aggregate expenditures equal to _____ is needed to close the gap. (Figure: Saving, Investment, Government Spending, and Net Exports)  In the graph above, if full employment income is $500 while the current equilibrium is $750 at point a, _____ gap exists, such that _____ in aggregate expenditures equal to _____ is needed to close the gap.   A)  an inflationary; a decrease; $100 B)  an inflationary; an increase; $250 C)  a recessionary; an increase; $100 D)  a recessionary; a decrease; $250


Definitions:

Interest-Bearing Note

A debt instrument in which the issuer pays interest to the holder, usually at a fixed rate, until the note reaches maturity.

Interest Revenue

Income earned from lending money or investing in interest-bearing assets.

Maturity Value

The total amount that will be paid to an investor at the end of a fixed income security's life, including principal and interest.

Interest-Bearing Note

A debt instrument that accrues interest over time, to be paid to the lender at maturity along with the principal amount.

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