In Econland,the Components of Planned Aggregate Expenditure Are Given By

question 108

Multiple Choice

In Econland,the components of planned aggregate expenditure are given by:
C = 500 + 0.75(Y - T) - 500 r
I = 300 - 500r
G = 400
NX = 30
If potential output equals 4,640,net taxes equal 40 and the central bank sets the interest rate at 0.05 (5%) ,then at the short-run equilibrium,there is a(n) _______ gap of _____.

• A) expansionary;40
• B) expansionary;100
• C) recessionary;100
• D) recessionary;80
• E) recessionary;40

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Urban Areas

Regions characterized by high population density and vast human features in contrast to areas dominated by natural landscapes; typically, cities and towns.

Assimilation

The process by which individuals or groups adopt the culture, language, and habits of a dominant or host society.

Asian-Origin Populations

Groups of people whose ancestry can be traced back to the Asian continent, including East, Southeast, and South Asia.

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