1.) A recessionary gap is a result of a) Government deficit. b) Inadequate aggre
ID: 1151537 • Letter: 1
Question
1.) A recessionary gap is a result of
a) Government deficit.
b) Inadequate aggregate demand.
c) Too much expenditures.
d) Both a and b.
2.) An inflationary gap is a result of
a) Government deficit.
b) Inadequate aggregate demand.
c) Too much expenditures.
d) Both a and b.
3.) Everything else constant, inflation
a) Leads to an increase in a country’s net exports.
b) Leads to a reduction in a country’s net exports.
c) Increases the inventories below the desired level.
d) b and c.
e) a and c.
4.) Everything else constant, inflation
a) Leads to an increase in a country’s exports.
b) Leads to a reduction in a country’s imports.
c) Increases the inventories above the desired level.
d) b and c.
e) none.
Explanation / Answer
1.The correct answer is B.
2. The correct answer is C.
3. The correct answer is B.
4. The correct answer is D.
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