One of the possible consequences of the expenditure schedule lying below the level of full employment GDP is

a. unemployment.
b. rising prices.
c. increasing production.
d. decreasing inventories.

a

Economics

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Define risk-loving behavior

What will be an ideal response?

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Assume that the M1 multiplier is 4. If the Federal Reserve purchases $200 worth of government securities, the money supply will

A) rise by $200. B) rise by $800. C) fall by $200. D) fall by $800.

Economics