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Figure 9-4

question 208

Multiple Choice

Figure 9-4
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.
-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

Definitions:

Decrease in Assets

A reduction in the value or quantity of the assets held by a company.

Common Stock

A form of corporate equity ownership, a type of security that represents ownership in a corporation and a claim on a portion of its profits or losses.

Revenue

The overall income that a corporation gathers from the sales of merchandise or offering of services throughout a designated period.

Prepaid Insurance

An asset account that represents insurance payments made in advance of the coverage period, to be expensed as the insurance coverage is used up.

Figure 9-4 ​

Definitions:

Figure 9-4