The GDP Gap Divided by the Multiplier Yields the

question 193

Multiple Choice

The GDP gap divided by the multiplier yields the

• A) optimal level of government spending.
• B) inflationary or recessionary gap.
• C) equilibrium level of injections and withdrawals.
• D) full-employment level of income.

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Definitions:

Plateau

A plateau is a flat or level portion of a graph, or similarly, an area of land that is relatively flat and elevated above the surrounding terrain.

Heat of Vaporization

The amount of energy required to turn a liquid into a gas at its boiling point.

Heat of Fusion

The amount of energy required to change a substance from the solid phase to the liquid phase at its melting point without changing its temperature.

Phase Graph

A graphical representation showing the various phases (solid, liquid, gas) of a substance as a function of temperature and pressure.