The above figure depicts an economy
A) with an inflationary gap.
B) with a recessionary gap.
C) producing at full employment.
D) None of the above answers is correct.
A
Economics
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Eventually the process of capital deepening comes to a halt as depreciation catches up with total saving
Indicate whether the statement is true or false
Economics
Consider an initial IS-LM equilibrium with normally-sloped curves. An increase in government spending takes us to a new equilibrium with ________ income and ________ interest rate
A) higher, a higher B) higher, a lower C) an unchanged, a higher D) an unchanged, a lower E) lower, an unchanged
Economics