If, at the Full Employment Level of Income, the Amount

question 97

Multiple Choice

If, at the full employment level of income, the amount that businesses plan to invest is greater than the amount that consumers plan to save, then

• A)there will be an inflationary gap.
• B)there will be a deflationary gap.
• C)total demand will fall short of potential GDP.
• D)the economy will suffer from increasing unemployment.

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Definitions:

Ethical Situations

Scenarios or dilemmas that involve making decisions based on moral principles and values.

Business Settings

The environment or context within which commercial activities are conducted, including physical locations and virtual platforms.

Mature Environments

Environments or sectors that have reached a state of equilibrium with established players, slow innovation, and stable customer demand.

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Contexts or settings characterized by predictability and consistent conditions, beneficial for strategic planning and business operations.