Figure 9-4 ​

question 208

Multiple Choice

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.

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Definitions:

Future Generations

The populace that will live and act in the coming times, inheriting the outcomes of present decisions.

Environmental Capital

Natural resources and ecological systems that provide vital goods and services to society, crucial for sustainability and health.

Natural Resources

Naturally occurring materials such as minerals, water, and fertile land that can be used for economic gain.

Global Warming

The long-term rise in Earth's average temperature, primarily due to the emission of greenhouse gases from human activities.