If Planned Aggregate Expenditure Equals 5,000 + 0

question 5

Multiple Choice

If planned aggregate expenditure equals 5,000 + 0.55Y and potential output (Y*) equals 10,000,then this economy has a(n) __________ gap that can be closed by _________.

• A) expansionary;increasing taxes
• B) expansionary;increasing transfer payments
• C) expansionary;increasing government purchases
• D) recessionary;increasing government purchases
• E) recessionary;increasing taxes

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Definitions:

Software Tested

A process where applications or programs are systematically checked for bugs, performance, and compliance with the design requirements.

Object-oriented Program

A type of programming that uses objects and classes to organize code, emphasizing encapsulation, inheritance, and polymorphism.

Agile Development Methodology

An iterative approach to software development that emphasizes flexibility, customer involvement, and adaptation throughout the project lifecycle.

Backup Copy In The Cloud

A stored duplicate of data or digital files in an online cloud storage service to ensure data recovery in case of loss or damage.