A recessionary gap is the amount by which
A) the short-run equilibrium level nominal GDP is above the short-run real GDP.
B) the short-run equilibrium level nominal GDP is below the short-run real GDP.
C) total planned real expenditures exceed total planned production in the long run.
D) the short-run equilibrium level of real GDP is below the full-employment level of real GDP.
D
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If the central bank of Orangeland pursues an expansionary monetary policy, ________
A) its labor supply will fall B) the price level in Orangeland will fall C) the demand for labor in the economy will increase D) the interest rate in Orangeland will rise
A tax system in which the average and marginal tax rates are the same for every level of taxable income and every change in income is an example of
A) regressive taxation. B) proportional taxation. C) progressive taxation. D) premium taxation.