-Using the Data in the Above Table, If Potential GDP

question 9

Multiple Choice

-Using the data in the above table, if potential GDP for this economy is $25 billion, then in order to restore full employment, the cash rate can be

• A) raised so that consumption expenditure, investment and net exports increase.
• B) lowered so that consumption expenditure, investment and net exports increase.
• C) lowered so that government expenditure on goods and services increases.
• D) raised so that net exports increase.
• E) lowered so that consumption expenditure and investment increase, though net exports decrease.

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