(Table: Keynesian Equilibrium Analysis with Taxes and Net Exports) Given

question 267

Multiple Choice

(Table: Keynesian Equilibrium Analysis with Taxes and Net Exports) Given the data in the table, if full employment income is $1,000 while the current equilibrium is $750, _____ 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; a decrease; $100
• D) a recessionary; an increase; $250

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Definitions:

Sales Revenue

The total amount of money generated by a company from its sales of goods or services, before any expenses are subtracted.

Decentralized Segments

Parts of an organization that operate independently with their decision-making processes, instead of being centrally managed.

Residual Income

The excess of operating income over a minimum acceptable operating income.

Operating Cash Flows

Operating cash flows refer to the cash generated from the normal operations of a business, including cash receipts and payments for goods, services, and other routine company activities.