If Planned Aggregate Expenditure (PAE)in an Economy Equals 5,000

question 113

Multiple Choice

If planned aggregate expenditure (PAE) in an economy equals 5,000 + 0.6Y and potential output (Y*) equals 13,000,then this economy has:

• A) an expansionary gap.
• B) a recessionary gap.
• C) no output gap.
• D) an income-expenditure multiplier equal to 8.
• E) an income-expenditure multiplier equal to 9.

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Definitions:

String Variables

Variables that store sequences of characters, commonly used in programming to handle texts such as names and messages.

Break Statement

A control flow statement used to exit loops or switch statements prematurely in various programming languages.

Switch Statement

A control statement in programming that allows a variable to be tested for equality against a list of values, each with a set of statements to be executed.

Logical Operator

Operators used in programming to perform logical operations like AND, OR, and NOT, typically used in decision-making processes.