The Critical Issue for Macro Stability Is Whether Spending Injections

question 2

True/False

The critical issue for macro stability is whether spending injections will actually equal spending leakages at full employment.
Otherwise there is too little or too much spending,which results in an inflationary or recessionary GDP gap.

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Definitions:

Common-Base Year Value

A financial analysis technique in which all figures are expressed in relation to a certain base year, allowing for comparison over time by setting a common reference point.

Accounts Receivable

Receivable sums by a business from its patrons for items or services delivered without formal settlement.

Debt-Equity Ratio

A proportionality indicator for assessing how company assets are funded through debt and equity.

Total Debt Ratio

A financial metric that compares an organization's total liabilities to its total assets, used to assess its leverage and financial health.