In an Open Mixed Economy, the Inflationary Expenditure Gap May

question 152

Multiple Choice

In an open mixed economy, the inflationary expenditure gap may be described as the

• A)excess of GDP over Ca + Ig + Xn + G at the full-employment output.
• B)excess of Sa + M + T over Ig + X + G at the full-employment GDP.
• C)extra consumption that occurs when investment increases in a full-employment economy.
• D)excess of Ca + Ig + Xn + G at the full-employment GDP.

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Definitions:

Premium

The amount paid for an insurance policy.

Peril

A specific risk or cause of loss covered by an insurance policy, such as fire, theft, or natural disaster.

Beneficiary

An individual or entity entitled to benefits or proceeds from a will, trust, insurance policy, or other contract.

Open Policies

Insurance policies that do not fix the value of the insured cargo but leave it to be ascertained in case of loss.