A Recessionary Expenditure Gap Exists If

question 109

Multiple Choice

A recessionary expenditure gap exists if

• A)planned investment exceeds saving at the full-employment GDP.
• B)the aggregate expenditures schedule lies below the 45-degree line at the full-employment GDP.
• C)the aggregate expenditures schedule intersects the 45-degree line at any level of GDP.
• D)the aggregate expenditures schedule lies above the 45-degree line at the full-employment GDP.

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