When the Expenditure Schedule Is Too Low, the Result Is

question 70

Multiple Choice

When the expenditure schedule is too low, the result is a(n)

• A)unemployment surplus.
• B)inflationary gap.
• C)recessionary gap.
• D)budgetary gap.

---

Definitions:

Saving

The portion of income not spent on consumption but rather set aside for future use or investment.

Time Inconsistency

The phenomenon where a decision-maker's preferences change over time, leading to choices that may not align with their long-term goals.

Monetary Policy

The process by which a central authority, usually a central bank, controls the money supply and interest rates to achieve economic objectives.

2008-2009 Recession

A significant decline in economic activity spread across the economy, lasting more than a few months, initiated in late 2008 due to a financial crisis.