If aggregate expenditure in an economy equals 1,000 + 0.9Y and full employment real GDP equals 9,000, then this economy has
A. an inflationary gap.
B. no output gap.
C. a recessionary gap.
D. no autonomous expenditure.
Answer: A
Economics
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Unilateral transfers between countries are
A) long-term loans. B) only international gifts, never payments that do not correspond to the purchase of any good, service, or asset. C) part of the current account but not a part of national income. D) known for reducing the income of capital owners. E) the difference between Y and GNP if the identity Y = C + I + G + CA holds exactly.
Economics
Bargain airline fares in which airlines charge varying rates to passengers for the same flight and service is an example of
a. market penetration b. transaction pricing. c. collusion. d. price discrimination.
Economics