Demand-pull inflation results from continually increasing the quantity of money, which leads to a continually

When one person enjoys the benefit of a tornado siren, she reduces the benefit to others

a. True b. False Indicate whether the statement is true or false

Answer the following statements true (T) or false (F)

1) If government decreases its purchases by $20 billion and the MPC is .8, equilibrium GDP will decrease by $100 billion. 2) If the MPC is .9, a $20 billion increase in a lump-sum tax will reduce GDP by $200 billion. 3) A recessionary expenditure gap in a mixed open economy can be measured as the extent to which aggregate expenditures (C a + I g + X n + G) fall short of real GDP at the full-employment level of real GDP. 4) The recessionary expenditure gap is the amount by which the equilibrium GDP and the full- employment GDP differ.